Siemens AG on Thursday snapped up DSL equipment vendor Efficient Networks Inc. in a US$1.5 billion merger that is designed to bolster Siemens' broadband offerings.
Siemens' Munich, Germany-based Information and Communications Network (ICN) group is already entrenched in the DSL hardware market as a maker of DSLAM (DSL access multiplexer) devices for service providers.
Siemens acquired Dallas-based Efficient as a way to provide additional DSL-related CPE (customer premise equipment) for business and residential users, according to a statement released by the two companies.
Under the deal, Mark Floyd, founder and chairman of Efficient, will become president of ICN's Access Solutions division.
Efficient also used the merger announcement to debut a fresh deal with Texas "Baby Bell" SBC Communications Inc. SBC has tapped Efficient to provide Ethernet-attached DSL modems for the next year.