The Australian subsidiary of Lucent Technologies has announced it will make an offer to acquire Australian telecommunications company JNA for AUS$114 million.
The move follows an agreement by the major shareholders of JNA to enter
into options to allow Lucent to purchase 19.9 per cent of JNA. This option,
which is subject to approval by the Foreign Investment Review Board, can be
exercised when the takeover for shares becomes unconditional.
JNA is a Sydney-based telecommunications manufacturer, reseller and systems
integrator with extensive design and development capabilities.
The publicly-held company has approximately 240 employees and had a 1997
calendar year revenue close to AUS$65 million.
According to Lucent, the acquisition would effectively double the company’s
design and development and sales and service capabilities in the Australian
telecommunications market.
Mike Butcher, president of Lucent Technologies Asia Pacific and chairman of
the board of Lucent Technologies Australia said: “JNA is a strategic fit
that would give us greater sales and support capabilities, more
leading-edge technology and impressive new research and development
capabilities.”
According to Mr Butcher, the acquisition of JNA would support Lucent’s
rapid expansion in the Asia/Pacific region and global growth plans.
If Lucent’s offer is successful, the company plans to distribute a
number of JNA products globally in addition to continuing to supply them to
the Australian market, Mr Butcher said.
Under the acquisition JNA’s research and development organisation would
most likely be integrated into Lucent’s Sydney-based research and
development facility to produce technology for the world market as well as
strengthen Lucent’s ability to rapidly develop products specifically for
the Australian market.
