Feeds

Ericsson buys Redback to challenge Cisco

Sound and vision

Internet Security Threat Report 2014

Ericsson has agreed to buy multi-service router firm Redback Networks for around $1.9bn in cash.

The deal, announced Wednesday, values Redback's stock at $25 per share, a tidy 60 per cent premium on its average price over the last three months, and is expected to close in February 2007, subject to the approval of Redback's shareholders and regulators.

Redback makes a range of IP routers, many designed for the edge of service provider networks, in competition with networking giant Cisco and others such as Juniper Networks. Ericsson said acquiring Redback would expand its IP market presence and growth opportunities. It specialises in technology designed to help service providers deliver internet broadband, voice and video service to their customers by taking advantage of newer IP technologies instead of more traditional ATM-based infrastructure.

"The combination of Redback's intelligent routing technology and our leading IMS (IP Multimedia Subsystem), optical transport and broadband access puts Ericsson in a leading position with end-to-end IP solutions for both fixed and mobile operators," Ericsson president and chief executive Carl-Henric Svanberg said. "The pace of IP deployment is accelerating as operators move to all-IP converged networks, in which quality of service requires increasingly intelligent routers with higher capacity."

Redback was founded in 1996 and boasts 700 carrier customers in more than 80 countries. It employs about 800 people, including 500 research and development engineers. Its sales grew 33 per cent in 2005 and 87 per cent for the first nine months of 2006 to reach $197m. Post acquisition, Redback will become a wholly owned subsidiary of Ericsson, based in its existing offices in San Jose and elsewhere. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.