Nortel Networks finalise $US300M Cambrian buyout
- 17 December, 1998 12:01
Nortel Networks announced yesterday it has successfully completed its acquisition of Cambrian Systems Corporation for around $US300 million in cash.
However, there is a catch as the company reports $US60 million of the total figure is depends on Cambrian Systems "achieving certain business objectives in 1999".
Nortel Networks is planning to use Cambrian Systems' optical technology to improve traffic speeds metropolitan and Internet backbone networks.
About 170 Cambrian Systems' employees are to be joined by 40 Nortel Networks optical Networks designers, the company reports. Cambrian Systems will continue to be based in Kanata, Ontario.
Nortel Networks announced the move less then a week ago, at which time it said some industry analysts commented positively on the move.
Robert Rosenberg, president of Insight Research Corporation said in a statement: "Less than three months after the Bay Networks acquisition, Cambrian Systems is another sound move. It will put Nortel Networks in a position to help its customers to move into the era of wideband local access service."