ACT NETWORKS BOUGHT CALABASAS FIRM ACQUIRED BY NORTHERN RIVAL.

Byline: Jason Z. Cohen  Staff Writer

CALABASAS - ACT Networks, a maker of products that bring together voice, data and video on the same network, is being acquired by a Redwood City company for an estimated $189 million in stock.

Clarent Corp., which makes equipment that allows voice and data transmission over the Internet, said it will issue 0.2546 shares of its stock for each share of Calabasas-based ACT Networks.

``We see numerous benefits resulting from this partnership,'' said Andre de Fusco, ACT's chief executive officer. ``Combined, we believe that Clarent and ACT will be better equipped to take on the competition.''

At Tuesday's closing price, ACT shareholders would receive stock worth $17.69 for each share they own. That represents a premium of $3.44 per share at ACT's Tuesday close.

ACT Networks' stock ended the day at a price of $14.25, an increase of 37.5 cents per share. Clarent's stock was down $5 per share to close at $69.50 following the announcement.

The combination will allow Clarent to better penetrate the market both companies have been targeting, said Jerry Chang, Clarent's chief executive officer.

Richard Heaps, Clarent's chief operating officer, said ACT's customers are interested in migrating from their current technology to the type of technology Clarent offers.

At the same time, many of Clarent's customers could take advantage of ACT's less costly products, the companies said.

``This combination will enable the combined company to better serve the needs of our existing customer base,'' Heaps said.

The acquisition agreement contains a clause that sets a minimum of $14 per share and a maximum of $18 per share Clarent will pay for ACT.

Both companies said they expect the transaction to be completed within 120 days.

ACT Networks and its 220 employees will be brought in as a wholly owned subsidiary of Clarent. The ACT Networks Division will continue to be headquartered in Calabasas, the company said.