1. NTT to Acquire Verio for $5 Billion, Expanding its IP Presence to the US
2. Cisco Systems to Acquire ArrowPoint for its Content-aware Web Switches
3. Really Big Acquisitions:   A List of Twenty in the Billion Dollar Range
4. ADC Acquires Altitun for Tunable Laser Technology
5. ADC Acquires IBSEN for Phase Mask Optical Components, DWDM Switch Processor
6. Corvis to Acquire Algety Telecom for Soliton Optical Technology
7. Nortel Networks Forms Optical Components Business Unit
8. Data Connection Introduces Source Code for MGCP and Megaco/H.248
9. Metrocall Migrates its Wireless Messaging Traffic to ATM Network

NTT to Acquire Verio for $5 Billion, Expanding its IP Presence to the US
NTT Communications, a subsidiary of Nippon Telegraph and Telephone, will acquire Verio for approximately $5.5 billion, excluding approximately $500 million it already holds in the company.  Verio currently hosts more than 400,000 sites and operates a Tier One Internet backbone network across the US.  To date, NTT Communications has been expanding its global network services and IP-based services, primarily focusing on Asia.  NTT Communications said the proposed merger would give it an important leverage point for expanding in the US, while facilitating its launch of new global IP services such as IP-VPN and global Web content caching.  The companies anticipate retaining the Verio brand name.  http://www.verio.com  http://www.ntt.com/index-e.html
NTT Communications, May 8, 2000

  • Last July, NTT Communications unveiled a major restructuring aimed at reforming its corporate culture and spurring its competitiveness in next generation IP networks. In addition to a new corporate logo and brand name, NTT Communications said it would expand its own networks in Asia- Pacific, North America and Europe.  

Cisco to Acquire ArrowPoint for its Content-aware Web Switches
Cisco Systems will acquire ArrowPoint Communications, publicly traded developer of content-aware Web switches, in a pooling of interests stock swap valued at approximately $5.7 billion (May 4 prices).  ArrowPoint's Web switches dynamically direct specific content requests to the best site and best server at that moment.  The switches look deep into the HTTP request headers all the way down to the URL and into cookies with strings of more than 256 bytes to determine what content is being requested. ArrowPoint's Web switches can bypass caches for non-cacheable content, such as Common Gateway Interface (CGI), Active Server Pages (ASP), or database queries, and transmit these non-cacheable requests directly to the origin server. Cisco said the acquisition would strengthen its presence in emerging markets that include ASPs , AIPs (Application Infrastructure Provider) and dot com companies.  ArrowPoint was founded in 1997 and is based in Acton, Mass.  http://www.arrowpoint.com
http://www.cisco.com/warp/public/146/pressroom/2000/may00/corp_050500b.htm
Cisco Systems, May 5, 2000

The deal marks Cisco's 10th acquisition so far this year.  The list of previous Cisco acquisitions
Really Big, Billion Dollar+ Networking Acquisitions

Price reflects valuation at time the deal was announced.

Lucent Technologies Ascend Communications $20 billion Jan 99
JDS Uniphase E-TEK Dynamics $15 billion  Jan 00
Nortel Networks Bay Networks $9.1 billion Jun 98
Alcatel Newbridge Networks $7.1 billion Feb 00
Cisco Systems Cerent Corp. $6.9 billion Aug 99
Cisco Systems ArrowPoint Communications $5.7 billion May 00
Alcatel DSC Communications $4.4 billion Jun 98
Cisco Systems StrataCom $4 billion Apr 96
Nortel Networks Xros $3.25 billion Mar 00
Lucent Technologies Ortel $2.95 billion Feb 00
JDS Uniphase Optical Coating Laboratories $2.8 billion Nov 99
Intel Level One Communications $2.2 billion Mar 99
Nortel Networks Clarify Inc $2.1 billion Oct 99
Cisco Systems Pirelli Optical Systems up to $2.15 billion Dec 99
Cisco Systems GeoTel Communications $2 billion Apr 99
Alcatel Xylan $2 billion Mar 99
Lucent Technologies Excel Switching Corp. $1.7 billion Aug 99
Intel DSP Communications $1.6 billion Oct 99
Alcatel Genesys Telecommunications Laboratories $1.5 billion Sep 99
Intel GIGA A/S $1.25 billion Mar 00

ADC Acquires Altitun for Tunable Laser Technology
ADC will acquire Altitun, a developer of tunable laser technology for optical networking, for approximately $872 million in stock.  Altitun, which is based in Kista, Sweden, is developing single chip lasers capable of operating across the entire EDFA (erbium doped fiber amplifier) window.  Its ANYWAVE tunable semiconductor lasers are based upon a proprietary GCSR (Grating-assisted codirectional Coupler with rear Sampled Reflector) chip structure that does not require temperature-tuning and does not contain moving parts.   http://www.adc.com/newsroom/index.html  http://www.altitun.com/
ADC, May 5, 2000 

  • In January, Altitun announced that Telenor AS is testing a 100-channel, mesh DWDM network that is driven by tunable laser technology instead of conventional electrical or electro-optical switches.  The technology was supplied by Altitun, Marconi and NTT.  Telenor deployed a five-node, 100-channel demonstrator network with 50-60 km fiber spans between the nodes. The channel spacing was 50 GHz.  Switching was accomplished by varying the frequencies of the transmitter lasers. 
  • Last December, Altitun received $10 million in venture financing from Kennet Capital, Vision Capital, Telia Business Innovation and Frank Bonsal (founder of New Enterprise Associates).

ADC Acquires IBSEN Micro Structures for Optical Components, DWDM Switch Processor
ADC acquired IBSEN Micro Structures, a developer of photonic components, for approximately $80 million.  IBSEN Micro Structures, which is based in Copenhagen, Denmark, supplies Near Field Holographic phase masks, a component that is used for the production of Distributed Feed Back (DFB) lasers, fiber Bragg grating and integrated optics devices.  IBSEN also produces fiber Bragg gratings, including filters for DWDM modules, gain flattening filters for fiber amplifiers and stabilizers for pump laser diodes.  The company is leveraging its phase mask technology in the development of a new DWDM switch processor, which will be a silica-on-silicon platform aimed at all optical networks.  http://www.ibsen.dk/   http://www.adc.com/newsroom/index.html 
ADC, May 5, 2000

Corvis to Acquire Algety Telecom for Soliton Optical Technology
Corvis Corporation will acquire Algety Telecom, a start-up developing ultra high capacity, long-haul optical transport technology, for an undisclosed number of shares.  Algety Telecom, which is based in Lannion, France, is pioneering the first commercial soliton optical transmission system. Solitons are specially shaped lightwave pulses that balance the effects of fiber dispersion and fiber non-linearity to allow higher bit rate transmission over longer distances than conventional systems.  Algety has demonstrated transmission of 1 terabit/second over a distance of 1000 km.  Corvis said the combination of Algety's soliton technology with its Raman amplification could lead to extremely high capacity, ultra-long reach backbone capabilities.  Algety was founded in 1999 by a team of engineers out of CNET, the R&D arm of France Telecom.  The company currently has 100 employees. http://www.corvis.com   http://www.algety.fr
Corvis, May 5, 2000

  • Last week, Corvis filed SEC paper for its initial public offering (IPO).

Nortel Networks Forms Optical Components Business Unit
Nortel Networks will reorganize its various optical components businesses into a new High Performance Optical Components Solutions group.   The new unit, which will have approximately 6,000 employees, will target both optical components, such as lasers, high-bandwidth receivers, and microelectronic components, including transmit and receive modules and semiconductor chips. Barbara Callaghan has been appointed president of the new business unit. 

STMicroelectronics will acquire Nortel Networks' silicon semiconductor production operations located in Ottawa, Canada.  Under the deal, the two companies will enter into a six-year supply agreement -- valued at up to an estimated US$2 billion over the first three years of its term -- whereby ST will supply to Nortel Networks silicon semiconductor devices.   http://www.nortelnetworks.com
Nortel Networks , May 5, 2000

Data Connection Introduces Source Code for MGCP and Megaco/H.248
Data Connection Limited (DCL) has extended its ATM, MPLS and SS7 source code product suite to include support for MGCP and Megaco/H.248 media gateway control protocols.  MGCP and Megaco./H.248 are media gateway control protocols defined by the IETF and ITU-T for use in distributed switching environments, where signaling logic is located on Media Gateway Controllers (MGCs - also known as Call Agents or SoftSwitches) and media logic is located on Media Gateways (MGs). Using MGCP or Megaco/H.248, MGCs can control MGs to set up media (e.g. voice traffic) paths through the distributed network.  Data Connections' new DC-MGCP and DC-Megaco software suites are suitable for use in a range of MGC and MG devices, including residential gateways, trunking gateways, Call Agents and SoftSwitches, and enhanced service platforms, such as IVR announcement servers. http://www.datcon.co.uk/MGCP/MGCPidx.htm
Data Connections, May 8, 2000

Metrocall Migrates its Wireless Messaging Traffic to ATM Network
Metrocall, which provides wireless data and messaging (paging) to more than six million subscribers across the US, began migrating its wireless messaging traffic to its newly completed ATM network.  The ATM network is currently carrying voice and data traffic to 120 of the company's administrative sites in 40 states.  The infrastructure uses Cisco equipment and HP OpenView.  http://www.metrocall.com/
Metrocall, May 5, 2000

 

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