Alcatel To Acquire Newbridge For $7 Billion - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Alcatel To Acquire Newbridge For $7 Billion

Targeting the lucrative telecom carrier equipment market, Alcatel SA today revealed plans to acquire Newbridge Networks, a maker of switches for the service provider market. With the $7.1 billion deal, Alcatel is hoping to better compete with Nortel Networks, Lucent Technologies, and Cisco Systems.

The companies say the acquisition will allow Alcatel to provide advanced, end-to-end broadband IP networks comprising Alcatel's widely used asymmetric digital subscriber line and wireless access gear with carrier switches from Newbridge to all types of service providers. Newbridge is best known for its wide area network access switches and asynchronous transfer mode carrier systems.

"Alcatel is making a major move to become a worldwide leader in new generation networks, which will handle the explosive growth of data with the appropriate quality of service," Alcatel CEO Serge Tchuruk says.

"This makes sense as the widening deployment of broadband access options such as DSL is driving the amount of data carried over service provider networks skyward," says Daniel Briere, president of TeleChoice, a telecommunications consulting firm. "To keep pace, the providers need teams like this to provide them the infrastructure they need to migrate to bigger bandwidth networks with advanced capabilities."

Like the big three, Alcatel seeks to help service providers migrate from networks based on older technologies to so-called next-generation networks based on the Internet Protocol.

Newbridge will merge with Alcatel's Carrier Data Division to form the new Carrier Internetworking Division, which will be based at Newbridge's headquarters in Kanata, Ontario, and is expected to have combined annual sales of more than $2.5 billion. The deal has been approved by each company's board of directors but still requires approvals from shareholders and regulators.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Register for InformationWeek Newsletters
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll