STOCKHOLM (08/02/2000) - Broadband network systems supplier Terayon Communication Systems Inc. Tuesday announced a definitive agreement to acquire privately held Mainsail Networks Inc. in a stock deal.
The acquisition of Mainsail Networks, which develops and markets products that allow data, video and voice transmissions between copper and fiber-optic networks, is aimed at helping Terayon to expand into the access infrastructure and optical transport markets, the Santa Clara, California-based company said in a statement.
Terayon said it will acquire the Fremont, California-based company in exchange for 3.2 million of its common shares. Based on Tuesday's closing price of US$51.19 per Terayon common share, the transaction is valued at around $164 million.
The deal has been approved by Terayon's board of directors but is still subject to various closing conditions. It is expected to close in the fourth quarter of Terayon's fiscal year, the company said.
Terayon, in Santa Clara, California, can be reached at +1-408-727-4400 or via the Web at http://www.terayon.com/.