Networking Giant Goes Shopping

  
* 
Amount:         $100
million

  
* 
Terms:           
n/a

  
* 
Premium:        n/a

  
* 
Industry:       
Speed/Bandwidth

  
* 
Scorecard:      A-

• 
  
• 
  GENEVA, May 5–STMicroelectronics (STM)
  announced the acquisition of Nortel Networks’ (NT)
  semiconductor division located in Ottawa, Ontario, Canada. for $100
  million. The companies also signed a six-year agreement under which STM
  will supply semiconductors to Nortel. The first three years of that deal
  will be worth an estimated $2 billion.
• 
  
•  

  
* 
Amount:       &nbs

p; $55
million

  
* 
Terms:           
1.25 ADSX shares for each share of ATEC

  
* 
Premium:        135%

  
* 
Industry:       
Speed/Bandwidth

  
* 
Scorecard:      C+

• 
  
• 
  HAUPPAUGE, May 5–ATEC Group (ATEC)
  , a major system integrator and provider of a full line of information
  technology products and services, announced that it has signed a letter of
  intent to be acquired by Applied Digital Solutions (ADSX)
  , in an all-stock transaction. ADSX is the parent company of IntelleSale.com. This letter of
  intent supersedes the prior proposal, announced on April 12, 2000, for the
  merger of IntelleSale.com and ATEC Group.
• 
  Under the terms of the letter of intent, Palm Beach-based Applied Digital
  would acquire all outstanding shares of ATEC Group’s common stock, payable
  in shares of ADSX stock, at a rate of 1.25 shares of ADSX stock for each
  share of ATEC. The transaction, subject to various terms and conditions,
  including approval by ATEC Group shareholders, is expected to close in July
  2000.
• 
  
•  

  
* 
Amount:         $12
million

  
* 
Terms:           
n/a

  
* 
Premium:        n/a

  
* 
Industry:       
Content/Communities

  
* 
Scorecard:      D+

• 
  
• 
  DENVER, May 5–Anything Internet (OTCBB: ANYI),
  a publicly held e-service company, has entered into a Letter of Intent to
  acquire Inform Worldwide of Englewood, Colo., for approximately
  $12,000,000. The Letter of Intent was approved by the board of both
  companies on May 4, 2000, and is expected to close within the next 60 days.
  Inform Worldwide develops cost
  effective, location-based services that enable businesses to increase
  productivity, profitability and market share. With this acquisition, Anything Internet is expanding in the use of the Internet to
  increase business productivity.
• 
  
•  

  
* 
Amount:         $5.7
billion

  
* 
Terms:           
2.12 CSCO shares for each ARPT share

  
* 
Premium:        20%

  
* 
Industry:       
Speed/Bandwidth

  
* 
Scorecard:      A

• 
  
• 
  SAN JOSE, May 5–Cisco Systems (CSCO)
  announced a definitive agreement to acquire publicly traded ArrowPoint
  Communications (ARPT)
  of Acton, Mass. Cisco is acquiring ArrowPoint to provide its customers
  with a feature-rich, flexible content switching platform.
• 
  Under the terms of the agreement, Cisco will exchange 2.1218 shares of
  Cisco common stock for every outstanding share and option of ArrowPoint
  Communications. Based on the closing price of $63 5/8 on May 4, 2000, this
  exchange ratio values the transaction at approximately $5.7 billion. This
  acquisition will be accounted for as a pooling of interests and is expected
  to be completed in the fourth quarter of Cisco’s fiscal year 2000.
• 
  
•