LUCENT ACQUIRES CHROMATIS.
Virginia based Chromatis, a maker of optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. equipment for telecommunications providers has been acquired by Lucent Technologies, Inc., for approximately $4.5 billion.
Chromatis, a two-year old company, is one of a number of small startup companies developing technology in the fiber-optic networking market, and has yet to release any of its products to the market.
Lucent, like others, is extremely interested in any family of products that improve the efficiency of transmitting data wires within large city metropolitan areas over optical networks using infinitely faster light waves, rather than electric impulses that travel over copper.
Lucent believes that they need companies such as Chromatis in order to develop next generation optical networks designed to reduce the bottlenecks that plague today's networks. The acquisition, if fulfilled, would enhance Lucent's ability to compete with its main rivals, Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony , Inc., of Brampton, Ontario Brampton (IPA: ˈbræmptən, ˈbræmtən) is a city in the GTA of Ontario, Canada and the seat of Peel Region. As of the 2006 census, Brampton's population stood at 433,806. , and Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation).
Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , San Jose San Jose, city, United States
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , CA.
The high price of the acquisition, particularly in light of the recent decline in technology stocks, may well be dictated by other behind the scenes potential competitive bids by companies such as Nortel and Cisco, as well as Cisco's recent acquisition of Cerent, another maker of optical networking equipment.