Brief: Nortel to Acquire Sonoma Systems for $540M

SAN MATEO (08/18/2000) - Brampton, Ontario-based Nortel Networks Corp. this week announced a definitive agreement to acquire broadband-access device maker Sonoma Systems Inc. for as much as US$540 million in Nortel stock. Marina del Rey, Calif.-based Sonoma produces access devices to be installed at customer premises that allow service providers to deliver integrated services, including Internet access, video, and Internet telephony. The transaction, which is expected to close in the fourth quarter, is subject to regulatory and shareholder approval. The purchase price, estimated at $480 million, will be paid in Nortel stock, with an additional $60 million in common shares paid at the end of the first year, subject to the fulfillment of certain business objectives.

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