NORTEL TO BUY SONOMA FOR ABOUT $540 MILLION.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 Corp. agreed to acquire broadband gear maker Sonoma Systems for as much as $540 million in stock. Nortel said $60 million of the share issuance is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent Sonoma achieving certain business objectives during the first year after closing. Nortel said the transaction is expected to close in the fourth quarter and is subject to customary regulatory and Sonoma shareholder approvals. Nortel has enjoyed surging demand for its optical components and networking equipment with the incredible growth of the Internet. Acquiring Sonoma, the company said, will enable it to "effectively tie the bandwidth and power of the high-performance optical Internet to the access solutions of the local Internet." Sonoma develops asynchronous Refers to events that are not synchronized, or coordinated, in time. The following are considered asynchronous operations. The interval between transmitting A and B is not the same as between B and C. The ability to initiate a transmission at either end. transfer mode-based broadband integrated access devices An IAD is a customer premises device that provides access to wide area networks and the Internet. Specifically, it aggregates multiple channels of information including voice and data across a single shared access link to a carrier or service provider PoP (Point of Presence). for network-service providers. The company, which in February filed for an initial public offering on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , makes networking gear for Nortel and other telecommunications-equipment makers under an original equipment manufacturer's agreement. For the year ended Dec. 31, 1999, Sonoma had a $14 million net loss and $7.1 million in revenue. Nortel said it expects the acquisition, excluding acquisition-related costs, to be neutral to per-share earnings from operations in 2000 and to add slightly to earnings per share in 2001. |
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