Israeli network vendor ECI Telecom this week announced it has signed a definitive agreement to acquire edge router maker Laurel Networks for US$88 million.
The acquisition will add edge routing and IP service capabilities to ECI's broadband, optical, and core routing portfolio. Chiaro Networks provides ECI's core router under a resale arrangement.
Founded in 1999 and based in Pittsburgh, Laurel has received a total of US$118 million in funding. Laurel currently has approximately 150 employees and US$9 million in cash.
Laurel began selling its edge routers in 2002 and has almost doubled its sales every year since, according to ECI. Sales for the 12 months ended April 30, 2005, totaled US$18 million, and key customers include Level 3, Korea Telecom and Dacom.
Laurel also has resale arrangements with ECI competitors Ciena and Marconi. The future of those deals following ECI's purchase of Laurel is unclear.
The transaction is expected to close within a few weeks. Upon closing, Laurel will become ECI's Data Networking Division.