GEC today ramped up its networking business with the acquistion of ATM switch specialist Fore Systems.
GEC said it will pay 43 per cent above Fore's closing price on Friday, valuing the transaction at around $4.5 billion.
Fore will boost GEC's existing networking line up, which includes access equipment vendor Reltec, purchased last month, and Coventry based Marconi Communications, in which GEC has a controlling interest.
Operating as a wholly owned subsidiary, Fore will give GEC enhanced penetration into the carrier and enterprise markets as well as providing ATM and IP switching for Marconi Communications.
GEC's stock price jumped 5.3 per cent to 608.5 pence at close on the London Stock Exchange. Fore's stock leaped 36 per cent when US markets opened, up $9 to $33.5.
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