Clarent Adds to VoIP Story

FRAMINGHAM (05/03/2000) - Voice-over-IP vendor Clarent Corp. announced it will buy ACT Networks in a stock swap deal valued at $189 million.

Interestingly, ACT is best known for its frame relay access devices that support voice over frame relay. Clarent plans on integrating its voice-over-IP technology with ACT's access devices - this way it can offer legacy data customers an easy migration path to IP.

While Clarent sell voice over IP hardware and software to enterprises, its primary focus has been service providers. Now the company wants to beef its enterprise story with a migration story and the additional distribution channels it will get from ACT.

ACT also serves the carrier community and the two companies will have more than 300 service provider customers between them. Clarent may also leverage existing development deals that ACT has with equipment manufacturers such as Lucent and Marconi's Fore Systems.

Clarent's employee base will grow by 220 once the deal with ACT is final, bringing its total number of employee to nearly 600.

ACT's President and CEO André de Fusco will be in charge of Clarent's ACT division. De Fusco will report directly to Richard Heaps who holds a bunch of titles including chief operating officer, chief financial officer, general counsel and secretary at Clarent.

Clarent's acquisition of ACT Networks is expected to close in the third quarter pending regulatory approval.

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