Nortel Completes Acquisition of Alteon

Nortel Networks Corp. has completed its US$7.8 billion acquisition of Alteon Websystems Inc. after Alteon stockholders approved the move on Wednesday, Nortel has announced.

The acquisition was first proposed in late July. [See "Nortel Bags Alteon for US$7.8 Billion," July 28.]As a result, Alteon stock will no longer trade on the Nasdaq exchange, Nortel said in a statement Thursday.

Alteon becomes a newly-formed content networking business unit of Nortel, and Dominic Orr, Alteon's president and chief executive officer, becomes the president of that unit.

Alteon's main product line is Web switches. These decrease delays in Web site response, or latency, by distributing user requests for information over several servers that host the same content. The devices also increase infrastructure reliability by detecting server failures and directing traffic to backup servers at the same site or to other servers at geographically dispersed data centers.

Nortel Networks, in Brampton, Ontario, can be reached at +1-905-863-0000 or at http://www.nortelnetworks.com/.

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