Alcatel Completes Acquisition of Packet Engines.NOTE TO MEDIA: Photo is available in a Smart News Release(TM) on Business Wire's Home Page at www.businesswire.com PARIS--(BUSINESS WIRE)--Dec. 14, 1998--Alcatel (NYSE NYSE See: New York Stock Exchange :ALA) has finalized See finalization. its acquisition of Packet Engines, Inc., a Spokane, WA-based innovator of Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. and routing switch See layer 3 switch. technology. On October 12, Alcatel announced it would acquire all of Packet Engines' outstanding capital and employee stock options in a cash transaction of a total value of $315 million. Completion was subject to the clearance from the Antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. Division of the American Department of Justice and to the approval by Packet Engines' shareholders, both of which have now been received. This acquisition underscores Alcatel's strategy to leverage its IP competence with closely controlled technologies and its commitment to expand its presence in the U.S. Packet Engines' product lines will also complement Alcatel's current data and enterprise offering with high-end routers and Gigabit Ethernet LAN switches A network device that cross-connects clients, servers and network devices. Also known as a "frame switch," stand-alone LAN switches are common in all Ethernet networks. A four-port switch is also typically built into a wired or wireless router for homes and small business (see wireless . By incorporating Packet Engines' technologies, Alcatel will strengthen its already significant worldwide positions in operator data networks and its leading position in European enterprise data networking integration. Following the acquisition of Packet Engines, the company will retain its name and continue to be headquartered in the Spokane area. Krish Prabhu, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Alcatel USA, Inc., will serve as Chairman of the company, while Bernard Daines, founder of Packet Engines, will remain CEO. A world leader in telecommunications systems and equipment, as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks A backbone network provides a path for the exchange of information between different LANs or subnetworks.[1] A backbone can tie together diverse networks in the same building, in different buildings in a campus environment, or over wide areas. to user terminals. This document may include forward looking statements within the meaning of Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the U.S. federal securities laws. These statements are based on current expectations, estimates and projections about the general economy and Alcatel's and Packet Engines' lines of business and are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expression. Statements related to future performance involve certain assumptions, risks and uncertainties, many of which are beyond the control of Alcatel or Packet Engines, and cannot be guaranteed. Important factors that could cause actual results to differ materially from those expectation include, among others, foreign and domestic product and price competition, cost effectiveness, changes in governmental regulations, general economic and market conditions in various geographic areas, interest rates and the availability of capital. Although Alcatel and Packet Engines believe that their respective expectations reflected in any such forward looking statements are based upon reasonable assumptions, they can give no assurance that those expectations will be achieved. |
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