Madge Networks will sell its Lannet subsidiary to Lucent Technologies for $117 million, the companies have announced, so Lucent can grow its data networking portfolio in Europe.
Following Nortel's recent announcement of its intention to acquire Bay Networks, speculation has been rife about which other data networking companies would be snapped up next by one of the voice equipment giants.
Lannet, based in Israel, specialises in Ethernet switches for small and large networks, and Ethernet and ATM switches for the network backbone. It employs 500 people.
Bill O'Shea, president of Lucent's data networking group, said: "Lannet offers a portfolio of award-winning, highly reliable IP and ATM networking products that are complementary to our existing offerings. They have a prestigious global customer base and strong sales channels, particularly in Europe, which is a critical growth area for Lucent."
This is the fourth data networking takeover Lucent has made since it announced its intention to grow into this market last year. It is a purely cash acquisition and is expected to go through by the end of September.
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