LUCENT ACQUIRES CHROMATIS.
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, Inc., of Brampton, Ontario, and Cisco Systems, San Jose, 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.
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|Title Annotation:||Company Business and Marketing|
|Comment:||LUCENT ACQUIRES CHROMATIS.(Company Business and Marketing)|
|Publication:||EDP Weekly's IT Monitor|
|Date:||Jun 5, 2000|
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