Lucent Spends $246 Million on VPN Firm
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In an effort to enhance its network offerings, Lucent Technologies Friday acquired Xedia Corp., a developer of Internet access routers for wide area networks, in a stock deal worth approximately $246 million.
Lucent will exchange all outstanding shares of Xedia for about 3.86 million shares of its stock. Lucent expects the transaction to be completed in the quarter ending December 31.
Xedia supplies routers designed to deliver IP-based virtual private network (VPN) technology to corporations and service providers to set up intranets and other networks. Its customer base includes MCI WorldCom's UUNET, PSINet, Concentric Network and Sprint.
Curtis Sanford, president of Lucent's InterNetworking systems group, said Xedia enhances Lucent's offerings to corporate and service provider clients.