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Nortel Finalizes Purchase of Alteon WebSystems

[Markham, CANADA] Nortel Networks has now concluded its acquisition of Alteon WebSystems, a major content networking player.

The merger was first announced earlier this year (see: Nortel Acquires Alteon for 7.8 Billion, July 28, 2000 and Nortel Pulls Power Move on Rivals, July 28, 2000).

The acquisition was effected by the merger of a wholly owned subsidiary of Nortel Networks with and into Alteon.

As a result of the merge, each outstanding share of Alteon common stock was converted into a right to receive 1.83148 Nortel Networks common shares.

Alteon WebSystems common stock will no longer trade on the Nasdaq.

Nortel issued approximately 82 million common shares in connection with the merger.

The new business unit provides Nortel customers with content networking capabilities to deliver rather robust, reliable, high-performance Web server infrastructure.

The new Content Networking will span the Optical Internet, Wireless Internet, Local Internet, and E-Business. As a result, service providers, Internet data centers, Web hosters, and portals are expected to be able to improve their reliability, speed, and profitability.

"This is a milestone in our efforts to bring a new level of intelligence and personalization to the Internet," said Clarence Chandran, Nortel's chief operating officer.

"The high-performance Internet will be able to prioritize and speed information to its destination by looking beyond the IP address and into the content sent by any given user."

Founded in May 1996, Alteon WebSystems employs a staff of over 600 around the world. It was a pioneer in the concept of Web switching.

For more background on Alteon, see: