Lucent has acquired privately held router company Xedia for $246 million of the telecom equipment giant's shares.
Xedia develops a range of Access Point Internet access routers that enable companies to build secure virtual private networks (VPNs) that run over the Internet.
Curtis Sanford, president of Lucent's Internetworking systems group, said: "This acquisition fills an important space in our enterprise data networking portfolio. Xedia's Access Point routing products will give Lucent a key advantage at the edge of the campus network, where corporations and service providers are coming together to deliver services, such as IP VPNs."
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