Networking Giant Goes Shopping

 STMicroelectronics (STM) to acquire Nortel
Networks (NT) unit

  
* 
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.




 

 Applied Digital Solutions (ADSX) acquires ATEC
Group (ATEC)

  
* 
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.




 

 Anything Internet (ANYI) to acquire Inform
Worldwide

  
* 
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.




 

 Cisco Systems (CSCO) to acquire ArrowPoint
Communications (ARPT)

  
* 
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.