Feeds

Ericsson buys Redback to challenge Cisco

Sound and vision

Top 5 reasons to deploy VMware with Tegile

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'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
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.