GEF - The Communications Source Wireless, IPTV, VoIP, FTTP, Test, OSS/BSS, Security, VPN, Ethernet, Switching & Routing, WDM, SDH/SONET, xDSL, Cable MSO, Storage, Chipsets, Photonics

For Visibility Edge over Your Competitors, contact advertising@globalexecutiveforum.net

Note: For M&A news after 10/01/06, please go to M&A, Investment, Appointments

Mergers & Acquisitions News (Before 10/01/06)

Acquicor acquires Jazz Semiconductor for $260M
Jazz Semiconductor is dropping its IPO plans, instead opting for a $260 million cash buyout from Acquicor Technology Inc.
The deal is expected to close in Q1, after which the wafer maker will be merged into an Acquicor subisdary. The purchase price is subject to adjustment and for possible future contingent payments.
The purchase will be funded with cash from a trust account and about $65 million from Wachovia Capital Finance.
The deal will bring $100 million into the books of Newport Beach's Conexant Systems Inc., which co-founded Jazz in 2002 along with the Carlyle Group.
Shu Li will continue as CEO of Jazz.
Newport Beach's Acquicor is a startup acquisition company founded by former Apple executives Gil Amelio, Ellen Hancock Related Channels: Chipsets, Mergers & Acquisitions

Motorola acquires Vertasent
Motorola, Inc. enhanced its next-generation video network platform with the acquisition of Vertasent, LLC.
Based in Colmar, Pa., Vertasent is a privately-held developer of software applications that enables services such as content-on-demand or IPTV to share resources and be delivered over a common infrastructure. Vertasent's applications manage the elements in a "switched" digital video network -- a key area of interest for cable operators. A switched video architecture can increase available bandwidth in a cable network by dynamically transmitting only those channels currently being watched in a given neighborhood. "Over the past several years, consumer demand for advanced video services, such as Video-on-Demand and High-Definition TV (HDTV) service, has risen rapidly. In response, pay-TV service providers are broadening the availability of many advanced services in order to reach a wider array of home and mobile devices," according to Mike Paxton, a cable TV industry analyst at In-Stat, a leading technology research firm.
Related Channels: Video, Mergers & Acquisitions

Motorola to acquire Symbol Technologies for $3.9 billion
Motorola, Inc. and Symbol Technologies, Inc. have signed a definitive merger agreement, under which Motorola has agreed to acquire all of the outstanding shares of Symbol for $15 per share in cash. The transaction has a total equity value of approximately $3.9 billion on a fully-diluted basis. As of June 30, 2006, Symbol had approximately $200 million of net cash.
Symbol is a leader in designing, developing, manufacturing and servicing products and systems used in end-to-end enterprise mobility solutions featuring rugged mobile computing, advanced data capture, radio frequency identification (RFID), wireless infrastructure and mobility management. The company's products and services help customers increase workforce productivity, improve customer service and enhance operational efficiencies by delivering information in real-time, as people, information and assets are on-the-move. Symbol is recognized as an industry leader in technology innovation, with a world-class product portfolio and valuable intellectual property. In addition, Symbol has a strong partner network and possesses deep domain knowledge and expertise in key verticals including retail, travel and transportation, manufacturing, wholesale distribution and healthcare.
Related Channels: Wireless, Mergers & Acquisitions

Telecom Italia sells 40.5% stake in mobile operator 'Avea' and invests in Oger
Telecom Italia announces that, having received authorisation from the relevant Turkish authorities, the sale of 40.5% stake in the mobile operator “Avea”, held by subsidiary TIM International, to Turk Telekom, for a total of USD 500 million, has been finalised.
Furthermore, as foreseen in the agreement announced on the 14 July, today, Telecom Italia has, at the same time, reinvested USD 250 million in the capital of Oger Telecom, the holding which controls Turk Telekom.
Related Channels: Wireless, Mergers & Acquisitions

Rocket acquires software products from Telcordia
Rocket Software, a Boston-based developer of Enterprise Infrastructure products, has acquired three software products from Telcordia Technologies, the leading provider of software and services for IP, wireline, mobility and cable networks. The products acquired by Rocket are currently sold under the names Information Management System (IMS) Workload Router, Information Management System DRC Facility, and Information Management System Y2K Exit Point Routine. The purchase closed at the end of last quarter, and Chris McKinzie of Austin-based Fluid Innovation Group advised on the transaction. This acquisition bolsters Rocket's already significant offerings in the database management market. Customers of the three products sold in the transaction will continue to receive support and product upgrades from Rocket.
Related Channels: OSS/BSS, Mergers & Acquisitions

MRO Software shareholders approve acquisition by IBM
MRO Software's shareholders have approved the company's acquisition by International Business Machines Corp. On August 3, IBM agreed to buy Bedford, Mass.-based MRO for $25.80, or roughly $740 million. MRO expects the deal to close in the first half of October.
Related Channels: OSS/BSS, Mergers & Acquisitions

Citizens Communications to acquire Commonwealth Telephone for $1.16B
Citizens Communications Company and Commonwealth Telephone Enterprises Inc. have entered into an agreement for Citizens to acquire Commonwealth for $41.72 per share, in a cash-and-stock taxable transaction, for a total consideration of $1.16 billion, based on the closing price of Citizens' common stock on September 15, 2006. Each Commonwealth share will receive $31.31 in cash and 0.768 shares of Citizens' common stock, which represents a 17% premium to Commonwealth's closing share price of $35.60 on September 8, 2006, the business day prior to Commonwealth's announcement that it was exploring strategic opportunities. The acquisition has been approved by the Boards of Directors of both Citizens and Commonwealth.
Citizens intends to finance the cash portion of the transaction with a combination of cash on hand and debt. Citizens has obtained a commitment for the financing necessary to complete the acquisition from Citigroup.
The combined company will be the 7th largest local telephone exchange company in the U.S., with pro forma annual revenues of approximately $2.4 billion and operations across 23 states. Upon completion of the acquisition, Citizens, which operates under the brand name of Frontier, will have approximately 2.6 million access lines, 388,000 High-Speed Internet subscribers and 6,600 employees.
Related Channels: Mergers & Acquisitions

Telecom Italia to acquire Time Warner's AOL Germany business for €675M
Telecom Italia has agreed to acquire Time Warner's AOL Germany Internet access business for EUR 675 million ($870 million, Equity Value) in cash.
The companies expect to close the transaction in four to six months, after receiving the customary regulatory approvals.
In light of Germany's fast-growing demand for broadband Internet access (over 12 million ADSL subscribers at 30 June 2006 that could increase by 10 million in the next three years), Telecom Italia is moving to consolidate its presence in Germany, which started with its acquisition of Hansenet in 2003 and expanded with its organic growth. Once its acquisition of AOL Germany's Internet access business closes, Telecom Italia will be Germany's second-largest broadband provider - with more than 3.2 million total subscribers, including nearly 2 million broadband customers.
Telecom Italia is already a European leader in broadband Internet access. With its presence in Italy, France, Germany and Netherlands as well as its pending acquisition of AOL Germany's Internet access business, Telecom Italia will serve approximately 9 million broadband subscribers in Europe.
Under a new partnership, AOL will provide co-branded audience services and content on a joint web portal for all of Telecom Italia's residential Internet access subscribers in Germany and will handle all online advertising sales.
AOL Germany has operated as an ISP for over 10 years and competes in both narrowband and broadband Internet access. As of June 2006, AOL Germany, ranked second and third among German narrowband and broadband access providers, had 1.1 million broadband subscribers and approximately 1.3 million narrowband subscribers.
Riccardo Ruggiero, CEO of Telecom Italia said: "This acquisition marks a further step in Telecom Italia's strategy of focusing on Broadband services and content delivery at an international level. Since we acquired Hansenet in 2003, our German presence has gone from strength to strength, confirming the validity of Telecom Italia's Broadband strategy, and with the AOL co-branding agreement our content offer, as well as our customer base, grows."
Related Channels: xDSL, Mergers & Acquisitions

Freescale to be acquired for $40 a share by a consortium
Freescale Semiconductor has agreed to be acquired for $40 a share by a consortium led by Blackstone Group and including Carlyle Group, Permira Funds and Texas Pacific Group. The company said the value of the deal is $17.6 billion, which makes it the largest buyout ever of a technology company, topping the $11.3 billion buyout of SunGard Data Systems. The Blackstone offer beat a competing bid from a group that included Kohlberg Kravis Roberts, Bain Capital, Apax Partners and Silver Lake Partners.
The Freescale board has unanimously approved the deal, which is not subject to financing.
Freescale, which makes chips used in mobile phones, networking equipment and other products, was spun off from Motorola in 2004. Motorola remains Freescale’s biggest customer, accounting for 27% of Freescale’s revenues in 2005.
Related Channels: Chipsets, Mergers & Acquisitions

DivX, CommVault and Riverbed to go public next week
With IPTV hotter than ever, the timing apparently couldn't be better for the market debut of San Diego-based digital media company DivX.
DivX, which has built its business around delivering digital video, plans to raise as much as $104 million when it lists on the Nasdaq next week. It plans to trade under the ticker "DIVX."
About 27% of DivX's total shares will be offered, with shares expected to price between $12 and $14 a share. That would value the total company at about $468 million. In comparison, RealNetworks, which offers a competing video format, has a market capitalization of about $1.6 billion.
The offering comes amid a voracious demand for user-generated and professional online video content. Video sharing sites like YouTube have experienced viral growth. Amazon and Apple have unveiled movie download services, and Wal-Mart, the world's largest retailer and seller of movie DVDs, is eyeing its own service.
DivX develops technology that compresses digital video to a size that makes it easy to transport across the Internet while maintaining high visual quality. The company's video software has been downloaded more than 200 million times, according to its own estimates. It also has also been expanding into content production and recently launched Stage6, its own online video sharing site.
The bulk of its revenue, however, comes from licensing its technology to consumer electronics manufacturers. About 82% of the company's total sales last year were generated by licenses to hardware device makers like Philips Electronics and Samsung and software vendors.
Big competitors like Apple, Google and News Corp. are all making a concentrated push into the digital media space and have
Elsewhere in the IPO market, two other technology companies are seeking to make their debut next week. Data management software provider CommVault expects to raise about $75 million, while Riverbed Technology is set to go public in an offering expected to generate $57 million for the company.
Related Channels: Video, OSS/BSS, Mergers & Acquisitions

KPN to acquire Tiscali's Dutch operations for 255 million euros ($324.5 million)
Dutch telecom group KPN has agreed to acquire the Dutch operations of Italian Internet service provider Tiscali for 255 million euros ($324.5 million).
KPN will take over the provision of services to 276,000 broadband and 126,000 dial-up Internet customers as well as its infrastructure in the Netherlands.
"This acquisition forms a further step in KPN's strategy of strengthening its position on the Dutch broadband market," KPN said in a statement.
The acquisition is subject to approval by the Dutch competition authority.
Related Channels: xDSL, Mergers & Acquisitions

Pay88 completes acquisition of China-Based QianBao Technology
Pay88 has finalized an acquisition agreement with the shareholders of Chongqing Qianbao Technology Ltd, an online payment services company based in Chongqing.
"We believe that the acquisition of QianBao Technology will add value to Pay88 by adding complimentary product lines, improved technology and strengthening our online marketing ability that will allow us to quickly broaden our online market penetration'' said Guo Fan, Pay88's CEO. ''This acquisition allows us to gain swift and respectable access to the huge and ever growing Chinese market. We are extremely excited by the positive implications this acquisition has to our future.''
Pay88 acquired Qianbao by purchasing 100% of Qianbao's registered capital stock in exchange for 5,000,000 shares of Pay88's Series A Convertible Preferred Stock.
Related Channels: China, OSS/BSS, Mergers & Acquisitions

RSA Security stockholders adopt merger agreement with EMC Corporation
RSA Security Inc., the expert in protecting online identities and digital assets, Friday announced that RSA Security stockholders voted to adopt the agreement and plan of merger pursuant to which EMC Corporation, the leader in information management and storage, will acquire RSA Security. At the special meeting of stockholders held yesterday, the holders of a majority of RSA Security's common stock outstanding and entitled to vote at the meeting voted to adopt the merger agreement. Pursuant to the merger agreement, the acquisition is expected to be completed within two business days.
Related Channels: Security, Mergers & Acquisitions

Cisco completes acquisition of Arroyo Video Solutions
Cisco Systems has completed the acquisition of privately-held Arroyo Video Solutions, Inc., a leading provider of next-generation solutions for on-demand television and related consumer services.
By acquiring the Arroyo solution, Cisco is now in a position to deliver a highly extensible platform for video-on-demand today and emerging time-shifted services in the future. The integration of the Arroyo platform into the Cisco IP-NGN (Next Generation Network) architectural framework enables carriers to accelerate the creation and distribution of network delivered entertainment, interactive media and advertising services across the growing portfolio of televisions, personal computers, mobile handsets and emerging media capable devices in our increasingly connected lives.
With the close of the transaction, Arroyo products are now integrated into the Cisco Cable & Video Initiatives Group, within the Service Provider organization led by Michelangelo A. Volpi, Cisco senior vice president and general manager, routing and service provider technology group.
Related Channels: Video, Mergers & Acquisitions

Lucent to acquire Mobilitec in cash
Lucent Technologies has entered into an agreement to acquire Mobilitec, a leading provider of content management software for wireless service providers. The acquisition strengthens Lucent's next-generation platforms that support voice, video, data and multimedia applications, enabling more services for mobile and broadband users.
Lucent will acquire Mobilitec, a privately held company in San Mateo, Calif., in a cash transaction. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by Dec. 31, 2006. Financial terms are not being disclosed at this time. The transaction is not material to Lucent.
Lucent intends to integrate the Mobilitec solution, which enhances Lucent's IP Multimedia Subsystem (IMS) and Mobility (3G) portfolios, with Lucent's application products to enable intelligent, personalized context-aware content delivery and targeted advertising. This will make it possible for service providers to offer special promotions on their Web storefronts that are personalized based on content, profiles, preferences, location and availability. In addition, these promotions can be targeted by device or user segment, and sent to friends through buddy lists to support viral marketing. Lucent's integrated solution will accelerate the service provider's ability to respond to the growing market opportunity.
According to Pyramid Research, the global market for mobile content services is expected to reach $73 billion by 2010. This market estimate includes services and applications such as ring tones, games, information, music, video and graphics but excludes messaging and remote access.
Related Channels: Wireless, OSS/BSS, Mergers & Acquisitions

AT&T to acquire USinternetworking for approximately $300 million
AT&T Inc. announced that its subsidiary, AT&T Corp., has agreed to acquire privately held USinternetworking, Inc. ("USi"), a leading independent Applications Service Provider (ASP) — for approximately $300 million in cash and assumed debt.
The transaction, which is expected to close in the fourth quarter, is designed to enhance AT&T's enterprise service offerings.
It strategically aligns USi's software and eBusiness management services and consulting expertise with AT&T's existing portfolio of enterprise hosting and managed services. These value-added growth services and capabilities are in high demand by companies that are increasingly using enterprisewide software applications to reduce costs, while looking for the expertise of a hosting and applications management provider that can help them deliver consistent solutions at scale and globally.
USi is a leading global independent ASP specializing in managed enterprise software solutions and on-demand services. USi provides software management and outsourcing services for widely used popular business software from companies like Oracle, PeopleSoft, Siebel, Microsoft, IBM WebSphere and Ariba. The company also develops, hosts and manages customized eCommerce solutions.
Following the acquisition, the company will operate as a wholly owned subsidiary and business unit within AT&T's existing enterprise services organization, which is led by Group President Forrest Miller. AT&T expects to retain USi's team and its domestic and international operations.
"The addition of USi's technology and expertise in applications management to AT&T's global reach, networking expertise and extensive hosting capabilities will broaden the range of solutions for our customers," said Miller.
"Our enhanced capabilities will enable businesses around the globe to more efficiently and effectively manage their core operations, enhance their productivity and derive further business value from their relationship with AT&T," Miller said.
"The USi team is excited to be joining forces with AT&T," said Andrew A. Stern, USi's chairman and chief executive officer. "Over the past eight years, USi has developed an unmatched ability to deliver enterprise-scale applications as fully integrated, on-demand services. Combining our capabilities with AT&T's global footprint creates an unparalleled opportunity for growth and the basis for continued market leadership for years to come."
Related Channels: OSS/BSS, Mergers & Acquisitions

News Corp, VeriSign form JV to provide mobile entertainment
News Corporation and VeriSign announced a joint venture to form the world's largest provider of mobile entertainment. News Corp. will pay approximately $188 million for a controlling interest in VeriSign's wholly-owned Jamba subsidiary and will combine it with Fox Mobile Entertainment assets.
The new company will merge the most technologically advanced platform in the category with market-leading mobile content production and delivery capabilities and will serve 30 territories with a potential reach of more than a billion mobile subscribers. The new company intends to retain the Jamster brand in the U.S. and the Jamba brand worldwide.
Lucy Hood, formerly President of Fox Mobile Entertainment, will become CEO of the joint venture. With key centers in Los Angeles and Berlin, the new entity will be the industry's only vertically integrated mobile entertainment company with unique capabilities to produce, market, sell and distribute mobile content.
"This is an important step in News Corp.'s strategy of becoming the world's leading digital media company," said Peter Chernin, News Corp. President and Chief Operating Officer. "We're the most powerful media company on the web with Fox Interactive Media, our aggressive digital content deals have given consumers access to News Corp. programming on every conceivable platform and we have already demonstrated innovation in this emerging space with the Mobisode(TM) and Mobizzo.
"Wireless technology gives us an enormous opportunity to reach billions of mobile phone users with our content. With this new venture we're looking forward to inventing new and compelling ways to engage this exciting new audience."
"We are excited to combine our unique mobile entertainment expertise and direct to consumer assets with one of the most forward-thinking media companies in the world. We look forward to working with News Corp. to create compelling, interactive services that make an impact on the next generation of wireless users," said Stratton Sclavos, VeriSign's Chief Executive Officer.
Related Channels: Wireless, Video, Mergers & Acquisitions

OneAccess acquires Telindus access products division
OneAccess, European leader of enterprise access routers and professional multiplay IP devices announced the acquisition of Telindus Access Products (TAP) division of Telindus Group. The TAP division will be transferred to OneAccess Belgium before the year end.
The TAP-division acquired by OneAccess consists of a team of 113 employees, mainly active in R&D, manufacturing, logistics and sales of niche-market access products and represented in 2005 3% of the total turnover of the Telindus Group. Nearly all these employees are active in Belgium. All current TAP employees will continue their activities with the same conditions in the Telindus' premises in Haasrode, Belgium.
"The consolidation on the European market is mandatory to compete with American and Chinese vendors", said Bertrand Meis, CEO of OneAccess. "With TAP, two of the most experienced European teams will work together to deliver state of the art solutions for the Telecom Operators, including innovative IP services for additional revenue streams. The strong support of Telindus and the TAP management team and a shared vision of the access market have been key in our decision to merge our teams."
Related Channels: Switching & Routing, Mergers & Acquisitions

Cortina buys assets of Intel's optical network components business for $115M and secures $132M new funding
California-based Cortina Systems has acquired the assets of Intel's optical network components business for $115 million, which consists of a minority investment position and an undisclosed amount of cash. Cortina also announced the completion of a new $132 million funding round led by new investor Institutional Venture Partners (IVP) as well as existing investors Canaan Partners and Morgenthaler Ventures. Additional investors providing funding include new investors Alloy Ventures, Bridgescale Partners, Doll Capital Management, and Sofinnova Ventures, and along with all of Cortina's existing venture investors. The transaction closed on September 8, 2006.
"Cortina has all the attributes we look for in a semiconductor investment: it's an expansion-stage private company with an industry-leading technical team and strong customer relationships with the leading systems vendors," said Norm Fogelsong, general partner at IVP. "We are happy to have led this funding round, which will create the next major semiconductor supplier in the networking space."
The acquisition is a major step forward in Cortina's strategy of becoming the new leader in components for the infrastructure routing, transport, and enterprise markets, making it the top provider of Ethernet Framers, Ethernet PHYs, Optical Transport FEC framers, Ethernet over SONET service framers, and T1/E1 Line Interface Units. As part of the acquisition, Cortina will add key Intel employees in engineering, product testing/validation, operations, marketing and application engineering as well as new facilities in Folsom, California, Raleigh, North Carolina, and Asia.
"As the market for 10 gigabit communications becomes mainstream, makers of switches, routers, and other infrastructure gear need better and more cost-effective ways to deliver a higher level of throughput," says Drew Lanza, general partner at Morgenthaler Ventures, one of Cortina's founding investors in 2001. "At the time we invested, we predicted the need to marry high-speed network interfaces, low-layer processing and high speed interfaces on a single chip. Cortina's success in achieving this has made it one of the stars of our portfolio."
Related Channels: Photonics, Chipsets, Mergers & Acquisitions, Funding

Motorola completes acquisition of Broadbus Technologies
Motorola, Inc. Friday announced it has completed the acquisition of Broadbus Technologies, Inc. of Boxborough, Ma.
On July 25, 2006, Motorola announced an agreement to acquire Broadbus, a leading provider of content on-demand technologies. Founded in 1999, Broadbus has deployed its Television on Demand solution with over 60 service providers worldwide.
With the close of the transaction, Motorola gains content management and distribution capabilities to address growing market opportunities such as mobile video, video on-demand (VOD), network-based digital video recording (nDVR), on-demand ad insertion (ODAI) and switched digital video (SDV).
Broadbus’ management team and employees will remain based in Boxborough and be integrated into the Motorola Connected Home Solutions business.
Related Channels: Video, Mergers & Acquisitions

Disney China said to acquire Enorbus, a Chinese wireless and interactive entertainment service provider
Local media report that Disney China might soon acquire Enorbus, a Chinese wireless and interactive entertainment service provider. Enorbus was established in 2001 in Beijing.
There is no comments from either Disney or Enorbus.
In April this year, Disney China acquired Shanghai Zhiying Information Technology Company, one of the first wireless marketing service providers in China, which was believed to be strategic preparation for further acquisitions in the online game industry in China.
In addition, Disney China has been recruiting some senior game developers in preparation for carrying out its game strategy.
Related Channels: China, Wireless, Video, Mergers & Acquisitions

Alcatel and Lucent shareholders OK $10.7 billion merger
On Thursday, Alcatel SA and Lucent Technologies Inc. won firm backing for their 8.4 billion euros ($10.7 billion) merger to create a major global telecom equipment maker.
The near-simultaneous votes in France and the U.S., gave the go-ahead for Alcatel's all-stock acquisition of New Jersey-based Lucent, scheduled for completion by the end of 2006.
The stock prices of both companies have fallen since the April merger announcement, sapping enthusiasm for the deal among investors.
Many Alcatel shareholders had complained that they were paying too much for Lucent in view of weaker earnings and guidance posted by the U.S.-based Lucent since the merger was negotiated.
Last week, Lucent settled two shareholder lawsuits that had threatened to delay the merger vote.
Lucent Chairman and CEO Patricia Russo, who will become CEO of the new Alcatel-Lucent from its Paris headquarters, told shareholders the deal would create the first truly global company in the sector.
"On our first day in operation, we'll be the No. 1 company in wireline, we'll be No. 3 in wireless and in the top three in services," Russo said. Alcatel-Lucent will have the industry's broadest product portfolio and one of the largest R&D operations, Russo added.
The combination of Alcatel and Lucent will generate annual synergies of 1.4 billion euros ($1.7 billion) within three years, of which over half will result from the planned shedding of 9,000 jobs, or about 10% workers.
Thursday's votes leave one remaining obstacle to the merger deal: the U.S. government's Committee on Foreign Investment in the United States.
In order to ease concerns about the Lucent security and defense technologies to be acquired by Alcatel, the two companies have agreed to ring-fence the sensitive activities under a new subsidiary headed by former U.S. defense secretary William Perry, former CIA chief James Woolsey and Kenneth Minihan, one-time head of the National Security Agency.
The U.S. committee is expected to give its verdict on the plans by the end of the year, Alcatel Chairman and CEO Serge Tchuruk, already named Chairman of the combined company, said Thursday.
Related Channels: Mergers & Acquisitions

Sybase to acquire Mobile 365
Sybase, Inc., a leading provider of enterprise infrastructure and mobile software, it has signed a definitive agreement to acquire Mobile 365, the global leader in mobile messaging and content delivery, in an all cash transaction. The purchase price set forth in the definitive agreement is $425 million, which is subject to adjustment based on Mobile 365's working capital as of the closing date. Net of acquired cash, the transaction is valued at approximately $400 million. The transaction is expected to close in the fourth quarter of 2006, subject to regulatory approvals and other specified closing conditions. Headquartered in Chantilly, Virginia, Mobile 365 is privately held and backed by leading venture capital firms including Draper Fisher Jurvetson, Draper Atlantic Venture, 3i Technology Partners, Institutional Venture Partners, and Mayfield.
For its fiscal year ended March 31, 2006, Mobile 365 generated approximately $90 million in revenue. Sybase expects the acquisition to be accretive to pro forma earnings within 12 months following the close of the transaction. Mobile 365 delivers mobile data and messaging, premium content, and value- added services for the leading mobile operators, content providers, global brands, media companies, and financial institutions worldwide. The company's core products and services include interoperability services, interactive services, and distribution services. Mobile 365 is the global leader in mobile interoperability messaging, including SMS, WAP, MMS, and Instant Messaging. At the core of its offering is an operator-grade network that is the most extensive, private network for mobile messaging available. Mobile 365 delivers more than 3 billion messages per month and has approximately 700 connections into mobile operators around the world, including Verizon Wireless, Vodafone, T-Mobile, Cingular, Telefonica, and China Mobile.
"This acquisition extends our Unwired Enterprise vision with the addition of two new enterprise channels -- wireless carriers and content providers -- making Sybase the leading mobile enterprise software and services provider in the world," said John Chen, Sybase chairman, CEO and president. "The mobile messaging market in the U.S. alone is expected to grow to $7.5 billion by 2008. Getting closer to this exploding mobile market through carriers is a key extension of our Unwired Enterprise strategy. Mobile 365 brings unparalleled breadth and depth of carrier relationships and the largest mobile messaging and content delivery platform, solidly positioning Sybase between carriers, global brands and mobile content."
Related Channels: Wireless, OSS/BSS, Mergers & Acquisitions

EC approves joint acquisition of Casema and Multikabel by Cinven and Warburg Pincus
Cinven and Warburg Pincus are both private equity companies with interests in a range of economic sectors. Casema and Multikabel are two Dutch cable operators providing radio and television, Internet access and fixed telephony services.
The Commission has found that Casema and Multikabel have only marginal overlapping activities in the markets for broadband Internet access, retail distribution of fixed telephony services, leased lines and in the emerging market for multiple play offers that are not liable to raise any competition concerns.
Casema’s and Multikabel’s main activity is to acquire from broadcasters distribution rights over their radio and TV channels (the wholesale market) and to distribute these channels via their cable networks to viewers (the downstream market). The Commission’s examination of the wholesale market showed that given Multikabel’s comparatively small subscriber base, the proposed transaction would not result in a substantial change of the market structure.
The examination of the relevant retail market did not give rise to competition concerns as Casema’s and Multikabel’s respective distribution areas do not overlap.
Related Channels: Cable MSO, Mergers & Acquisitions

KPN is not in talks about a tie-up with Belgacom
Dutch telecoms group KPN said on Wednesday it is not in talks with Belgacom about a tie-up, rejecting a report in a Belgian daily suggesting the two companies were in talks.
Related Channels: Mergers & Acquisitions

Thomson spokeswoman declines to comment on a possible leveraged buyout
Thomson's diverse product mix, which includes a service that put films on DVDs and decoders for telecom companies, has flummoxed some investors. Chairman Frank Dangeard is reportedly looking to convince investors to take the company private in order to wait for newly acquired companies to turn healthier profits.
A Thomson spokeswoman declined to comment on a possible leveraged buyout.
Related Channels: Video, Mergers & Acquisitions

Qwest completes acquisition of OnFiber
Qwest Communications International Inc. has completed the acquisition of privately held OnFiber Communications, Inc. for $107 million in cash. Qwest announced its intent to purchase OnFiber in May, 2006.
Qwest has a robust portfolio of data services, including metro optical Ethernet, and the OnFiber assets bring additional network facilities from which to deliver the services to businesses in 23 metropolitan areas outside the Qwest 14-state local service territory.
"This makes Qwest easier to do business with because OnFiber gives us an efficient method of delivering services to more business customers in dozens of markets throughout the U.S.," said Tom Richards, executive vice president, business markets group for Qwest. "Also, OnFiber allows us to introduce the Spirit of Service and our Qwest suite of services to OnFiber's existing customers. Ultimately, the acquisition was a smart and disciplined approach to enhancing our national presence and accelerating our growth of key products, including Ethernet."
"Throughout the closing period we focused on ensuring a smooth transition for OnFiber's customers -- most of whom are large businesses and government clients," continued Richards. "Our national sales organization and OnFiber's sales team integrate well, and we're excited about the opportunity to expand those relationships."
Related Channels: Ethernet, Mergers & Acquisitions

Shareholders of Alcatel and Lucent scheduled to vote on the merger on Thursday
Alcatel's US$10.4 billion purchase of Lucent Technologies will result in 1.4 billion euros (US$1.8 billion) in savings and the loss of about 9,000 jobs.
Shareholders of Alcatel and Lucent are scheduled to vote on the merger on Thursday.
Related Channels: Mergers & Acquisitions

Alcatel to purchase Nortel's UMTS access business for $320M
Nortel has signed a non-binding Memorandum of Understanding for the sale of its UMTS access business to Alcatel for US $320 million, a move that will enable Nortel to simplify its business and strategically focus its investments for leadership in key markets while ensuring its customers' UMTS access requirements will continue to be met.
As part of its business strategy, Nortel is executing on plans to increase investment in key areas, partner in others, and divest where there is no path for it to lead or realize attractive returns.
"Nortel is sharpening its focus on the markets in which we intend to lead. Our UMTS access business lacks the scale and momentum needed to become profitable," said Mike Zafirovski, president and chief executive officer, Nortel.
There are three core elements of Nortel's strategic focus - next-generation mobility, enterprise transformation, and services and applications. Much like its partnership with Microsoft announced in July, this is another key step in changing the trajectory of Nortel's business.
"With next-generation mobility, we see an opportunity to change the game by applying our networking expertise and technology innovation to significantly alter the economic paradigm of mobility solutions in the future," said Zafirovski.
"We are absolutely committed to mobility and plan to lead the 4G evolution and play a key role in the mass market adoption of mobile video and multimedia services." said Richard Lowe, president, Mobility and Converged Core Networks, Nortel. "With a strong position in GSM and CDMA, an established service provider customer base, and technology leadership in key areas like OFDM-MIMO, we have a solid foundation for success going forward."
As part of its ongoing mobility business, Nortel will continue to develop and support solutions for the evolution of GSM access and core, GSM-R, GPRS and EDGE technologies as well as CDMA access and core and UMTS core.
The proposed sale includes Nortel's UMTS access product portfolio made up of the Radio Network Controller and Node B products and OAM solutions, related services and associated assets. It is anticipated that the significant majority of employees of Nortel's UMTS access business will transfer to Alcatel. Completion of the transaction is subject to, among other things, the negotiation and execution of a definitive agreement between Nortel and Alcatel, completion of consultations with work councils and other employee representatives, and customary closing conditions including regulatory approvals. The parties are targeting completion of the transaction in the fourth quarter of 2006.
Related Channels: Wireless, Mergers & Acquisitions

Millicom acquires control of Colombia Movil
Millicom International Cellular S.A. ("Millicom") has acquired control of Colombia Movil S.A. E.S.P., the third mobile operator in Colombia, which operates under the Ola brand. Ola has an estimated 9% market share in a country of over 43 million people.
Millicom is acquiring 21.6 million new shares of Colombia Movil, which represents a 50% plus 1 share controlling stake in the Company, for a consideration of US$125 million. Including this initial equity contribution, Millicom expects to invest a total of approximately $200 million of new equity in Colombia Movil within the next three years. Millicom's investment will be fully funded by way of new debt in another wholly owned Millicom Latin American subsidiary, so that Millicom will not be drawing down its current Corporate cash reserves for this investment.
Millicom will treat Colombia Movil as a subsidiary.
Related Channels: Wireless, Mergers & Acquisitions

Telstra buys a 51% stake in China's SouFun
Telstra has bought a 51% stake in Chinese online real estate and home improvement group SouFun Holdings for $254 million, a move that give the Australian company access to China's booming property market.
"With this one acquisition, we have established ourselves as the undisputed market leader in the high growth online Chinese real estate market," Telstra CEO Solomon Trujillo said. "We have opened a gateway to the racing Chinese online advertising market."
The acquisition, which comes less than a week after Canberra confirmed it will sell an A$8 billion ($6 billion) stake in Telstra, is expected to be earnings per share positive after three years, and will add to cash flows immediately.
The acquisition will be folded into Telstra's Sensis advertising and directories business, which is seen as a future growth driver amid declining earnings at Telstra's fixed phone line business and tough competition in the mobile and broadband markets.
"Chinese real estate sales already represented 7% of China's GDP in 2005. The market is forecast to grow 21% on a compound average growth rate to be worth $438 billion by 2010," Trujillo said.
SouFun, which attracts more than 40 million visitors each month and is ranked in the top 100 most visited Web sites globally, is expected to show near-triple digit revenue growth, and plans to expand to 100 Chinese cities by the end of 2008 from the 40 it currently covers, Trujillo said.
Telstra expects SouFun, its first acquisition in mainland China, to add around A$52 million ($40 million) to revenue for the year to June, 2007, with earnings before interest, tax, depreciation and amortization of A$18 million ($14 million).
Related Channels: China, Mergers & Acquisitions

Nokia to acquire gate5
Nokia and gate5 AG announced that an agreement has been signed for Nokia to acquire gate5. gate5 is a leading supplier of mapping, routing and navigation software and services. By acquiring gate5, Nokia will offer consumers maps, routing, navigation and other location based applications on its mobile devices.
"Maps and navigation are natural elements to be offered in mobile devices but this area hasn't developed as fast as expected by the market. Acquiring gate5 enables Nokia to offer consumers the world-leading mobile location applications, such as maps, routing and navigation at an accelerated speed." said Anssi Vanjoki, Executive Vice President and General Manager, Multimedia, Nokia. "The Personal Navigation Device market is in a rapid growth phase with the global market size expected to reach 15 million units in 2006 compared with 8 million units in 2005. By integrating the maps and navigation capabilities into our devices, Nokia will participate in this growth. Nokia Nseries multimedia computers offer people new ways to explore their world - navigation and maps enhance this journey and add to the overall experience."
gate5 is a leading supplier of mapping, routing and navigation software and services. gate5 was founded in 1999, is privately owned, has its headquarters in Berlin, Germany and has approximately 70 employees.
"Our combined expertise means that mobile device owners will enjoy a wide range of location based services," said Dr. Michael Halbherr, CEO, gate5. "Based on maps and routing functionality, there are countless useful features for mobile users; e.g. travel guides, search what is around you including restaurants, hotels, shops, etc. anything you need in your surroundings. We are excited to become part of Nokia and to be able to take the gate5 technologies and products to even wider audiences."
Related Channels: Wireless, OSS/BSS, Mergers & Acquisitions

SinglePoint acquires Mobile Media North America
Bellevue, Wash.-based Wireless Services Corp. announced it closed a $30.75 million series C round of funding. A portion of the proceeds were used to acquire Mobile Media North America. With the acquisition, Wireless Services has changed its corporate name to SinglePoint to reflect the new focus and will remain headquartered in Bellevue, Wash.
SinglePoint represents the marriage of proven mobile messaging technology with industry-leading campaign management and production tools. "The result is a mobile messaging and marketing company with the reliability required by carriers and the flexibility to drive marketing promotions," said Rich Begert, who will remain as president and CEO of SinglePoint.
Seattle-based Ignition Partners led the funding round and was joined by new investor Rally Capital Services LLC. Pre-existing investors participating include Northwest Venture Associates, Madrona Venture Group LLC, Intel Capital and SeaPoint Ventures.
"We see SinglePoint's years of experience in this space and strong leadership giving the company an edge to capitalize on the prospect of triple-digit growth in the mobile content market over the next few years," said Adrian Smith with Ignition Partners.
Related Channels: Wireless, Mergers & Acquisitions, Funding

Ericsson to acquire Distocraft's assets for wireless OSS
Ericsson has reached an agreement with Finnish company Distocraft Oy to acquire the assets of Distocraft's business. The company, with 42 employees, specializes in software development for mobile network performance management.
In today's highly competitive environment, increasingly more focus is being placed on network and service management to reduce costs without compromising quality of service. Performance management systems give operators information about their networks performance, allowing them to improve efficiency and reduce time-to-market.
With this acquisition, Ericsson will expand the capabilities of its market-leading OSS portfolio, addressing both new technologies, such as HSPA (High-Speed Packet Access), IMS (IP Multimedia Subsystem) and 3G LTE (3G Long-Term Evolution), and multivendor environments.
Kurt Jofs, Executive Vice President and General Manager, Business Unit Access, Ericsson, says: "I am pleased to announce this acquisition. It will further strengthen our ability to support our customers with best-in-class network management, allowing them to focus on the introduction of attractive end-user services."
Related Channels: Wireless, OSS/BSS, Mergers & Acquisitions

Emulex to acquire Sierra Logic
Emulex Corporation and Sierra Logic, Inc. have signed a definitive agreement whereby Emulex will acquire Sierra Logic, Inc., a leading provider of embedded ASIC components and firmware solutions for enterprise storage systems.
The acquisition of Sierra Logic expands Emulex's position in the market for embedded multi-protocol storage products. Sierra Logic's current product portfolio, which includes embedded bridges and routers, enables connectivity of low-cost Serial Advanced Technology Attachment (SATA) disk drives within Fibre Channel-based enterprise storage systems. Further, these products are deployed by the world's leading OEMs in conjunction with Emulex's existing InSpeed embedded switches and I/O Controller (IOC) products to provide a fully complementary embedded end-to-end solution.
"This acquisition solidifies Emulex's embedded multi-protocol strategy and is another critical step toward becoming the market leader in the end-to-end embedded storage components market. The expansion of our embedded product portfolio also provides incremental revenue opportunities and we believe extends Emulex's addressable market for embedded storage components to more than $800 million, and the Company's total available market to $2.7 billion by 2009,"' said Paul Folino, Chairman and CEO of Emulex.
Under the terms of the agreement, Emulex will acquire Sierra Logic for a transaction value of up to approximately $180 million in cash, assumed debt and assumed Sierra Logic stock options, plus employee equity incentive compensation. The board of directors and shareholders of Sierra Logic have approved the acquisition and it is expected to be complete on or near September 30, 2006, subject to certain closing conditions. Sierra Logic consists of approximately 70 employees, primarily engineers based in Roseville, California.
Related Channels: Storage, Mergers & Acquisitions

AMCC completes Quake acquisition
Applied Micro Circuits Corp. (AMCC) has completed the acquisition of Quake Technologies, Inc., the leading provider of 10 Gigabit Ethernet (10GE) PHY technology. As a pioneer in the 10GE PHY technologies, Quake was the first company to successfully deliver an entire production- worthy product line for a broad range of distances, from short to long reach.
"We are pleased to announce the successful completion of this acquisition. We look forward to integrating our technology and customer assets in order to develop 10G Ethernet solutions for the Enterprise and Service Provider markets," said Kambiz Hooshmand, president and CEO of AMCC. "Our strategy is focused on converged information and storage networks based on IP and Ethernet. As a result of this acquisition, AMCC is now a leader in the 10G Ethernet market."
Under the terms of the agreement, AMCC acquired all outstanding shares of Quake for approximately $69 million in cash (net of Quake's estimated cash and receivables that AMCC assumed in the deal). AMCC plans to consolidate its design groups in Ottawa into a single facility and continue to benefit from the experienced engineering talent of the Ottawa area.
Related Channels: Chipsets, Ethernet, Storage, Mergers & Acquisitions

OCP completes GigaComm acquisition
California-based Optical Communication Products, Inc. (OCP), a leading manufacturer of optical subsystems and modules, has completed its acquisition of privately-held GigaComm Corporation, a Taiwan-based supplier of passive optical network (PON) fiber-to-the-home (FTTH) components, as previously announced on July 13, 2006.
OCP designs, manufactures and sells a comprehensive line of high performance, highly reliable fiber optic subsystems and modules for metropolitan area, local area and storage area networks. Furukawa Electric Co. Ltd., based in Tokyo, beneficially owns 58% of OCP's outstanding capital stock as of June 30, 2006.
GigaComm was founded in 2000, has its headquarters and manufacturing facilities in the Hsinchu Science-Based Industrial Park in Taiwan.
Related Channels: FTTP, Photonics, Mergers & Acquisitions

Global Crossing UK makes $96.1M cash offer for Fibernet
Global Crossing announced Friday that its subsidiary, GC Acquisitions UK Limited ("GC Acquisitions UK") has made a cash offer to acquire all of the issued and to-be-issued shares of Fibernet Group Plc, a provider of specialist telecommunications networks to large enterprises and other telecommunications and Internet service companies.
The offer values the issued and to-be-issued shares of Fibernet at approximately $96.1 million (50.6 million British pounds sterling) and has been unanimously recommended by Fibernet's board of directors. If they accept the offer, Fibernet shareholders would receive 78 pence (approximately $1.48) per share in cash at closing of the transaction. The Fibernet directors have irrevocably undertaken to accept the offer with respect to all of their direct and beneficial holdings. In addition, certain institutions have also agreed to accept the offer, subject to conditions. The directors' shares combined with the institutional shares represent approximately 39 percent of Fibernet's outstanding shares.
"This is a great transaction for our company and for Fibernet," said John Legere, chief executive officer of Global Crossing. "Global Crossing and Fibernet have complementary businesses in the UK. The opportunity to combine and grow these businesses is compelling and exciting for us. I look forward to a quick and seamless integration upon closing and to better serving existing customers and welcoming new customers with the expanded range of products we will offer."
Related Channels: Ethernet, Mergers & Acquisitions

Belgacom acquires the remaining 25% stake in Proximus from Vodafone
Belgacom and Vodafone have concluded an agreement under which Vodafone’s shares in Belgacom Mobile (Proximus) will be sold to Belgacom for a total of EUR 2 billion, which takes into account a net cash position. It is estimated that at the end of September, Proximus’ net cash position will be approximately EUR 1.4 billion. Following this operation, Belgacom Mobile will become a whollyowned subsidiary of Belgacom. This transaction is subject to approval by the competent competition authorities. Lehman Brothers Inc. acted as Belgacom’s financial adviser and issued a fairness opinion in this transaction.
Didier Bellens, Belgacom President & CEO states: "Our strategy has always been to be a leader in all of our businesses. The agreement with Vodafone will allow us to strengthen the cooperation within our group, and respond to the market trend towards convergence by focusing on delivering fully integrated solutions to our customers. The Group now has all the necessary assets to address the current market evolutions, while maintaining its leadership position in Belgium.”
The business relationship between Proximus and Vodafone will be maintained In the meantime, Proximus and Vodafone have signed a revised commercial cooperation with an initial 5 year term. As Didier Bellens says: “From the beginning, Vodafone has been an active and dynamic partner for Proximus. I am delighted that our successful business relationship with Vodafone can be preserved beyond this financial transaction.” Proximus and Vodafone will further cooperate in various areas, such as buying activities (handsets, network, etc.), Vodafone live!, Vodafone products and services, multinational customers, roaming, etc.
Related Channels: Wireless, Mergers & Acquisitions

ISS urges Lucent, Alcatel shareholders to approve merger deal
Institutional Shareholder Services Inc., the influential US shareholder advisory firm, on Thursday recommended that shareholders approve Lucent Technologies' planned $10.4 billion acquisition by Alcatel.
"Although some degree of skepticism is warranted when evaluating any so-called merger of equals and the slide in share price of both Lucent and Alcatel is cause for concern ... we believe the proposed transaction warrants Lucent and Alcatel shareholder support," ISS said in a report.
ISS supports the deal based on the "compelling strategic rationale, attractive synergies and conservation valuation."
Shareholders are due to vote on the deal, announced in April, on September 7.
Related Channels: Mergers & Acquisitions

HP advised to acquire a security software vendor such as Symantec or McAfee
In view of IBM's Wednesday announcement that it would buy a security software company, Hewlett-Packard should be looking to buy a security software vendor such as Symantec or McAfee, according to a Thursday research report from the Cowen securities firm.
IBM, HP's big competitor, said Wednesday it would pay $1.3 billion to purchase Internet Security Systems, giving it a presence in the security business. "Larger systems software companies have been aggressively acquiring security software vendors and point technology," said Walter Pritchard, an analyst at Cowen, adding that Hewlett-Packard "is notably absent."
Walter Pritchard said Santa Clara.-based MacAfee would make the most sense in filling the gap. Yet he added that "clearly an acquisition of Symantec would be a broader move than just filling in the security piece."
Symantec, which provides consumer products and computer management services, is the much bigger company.
Acquiring a security software vendor is a must for big hardware providers, according to Paul Stamp, an analyst for Forrester Research. "It's something very hard to grow organically," he said. "Every large IT vendor has realized you can't have a traditional revenue base without security."
Related Channels: Security, Mergers & Acquisitions

Competition Alert for HP: IBM to acquire Internet Security Systems (ISS) for $1.3 billion
IBM and Internet Security Systems, Inc. announced the two companies have entered into a definitive agreement for IBM to acquire Internet Security Systems, Inc., a publicly held company based in Atlanta, Ga., in an all-cash transaction at a price of approximately $1.3 billion, or $28 per share. The acquisition is subject to Internet Security Systems, Inc. shareholder and regulatory approvals and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2006.
Internet Security Systems (ISS) provides security solutions to thousands of the world's leading companies and governments, helping to proactively protect against internet threats across networks, desktops and servers. ISS software, appliances and services monitor and manage network vulnerabilities and exploits and rapidly respond in advance of potential threats. This acquisition advances IBM's strategy to utilize IT services, software and consulting expertise to automate labor-based processes into standardized, software-based services that help clients optimize and transform their businesses.
This acquisition also reinforces IBM's position in the rapidly growing area of Managed Security Services. With concerns ranging from data theft to implementing and managing increasingly complex regulatory requirements, addressing IT security has become one of the most complex challenges companies are facing, regardless of size, location or industry.
Related Channels: Security, Mergers & Acquisitions

Sony Pictures Entertainment (SPE) acquires Grouper
Sony Pictures Entertainment (SPE) has acquired Grouper, the fast growing user-generated video site on the Internet, it was announced by Michael Lynton, SPE Chairman and Chief Executive Officer.
Grouper.com, which is the second largest independent video community, enables its members to watch, share and create video on the Web. Under the terms of the $65 million deal, the Sausalito-based company will retain its current management, working closely with a team at Sony Pictures.
“Consumers are spending more and more time on sites like Grouper, and as one of the world’s largest creators of entertainment, we want to be where the audiences are,” said Lynton. “This acquisition demonstrates the breadth of involvement of Sony Corporation in the field of digital online entertainment. Many people in the Grouper community use Sony cameras to create videos and Sony VAIO computers and mobile devices to store and view them. It makes sense to complete the circle by having Grouper be a part of Sony Pictures Entertainment, which itself creates so much content for people around the world.”
“When you pair Grouper’s innovative video sharing platform on the web and the desktop with Sony’s connected devices and copyrighted media you create a dynamic and exciting environment for consumers,” said Grouper CEO and co founder Josh Felser. “We have an opportunity, as part of the Sony family, to bring together user-generated and copyrighted content across platforms and devices for the first time.”
Related Channels: Video, Mergers & Acquisitions

Comverse to acquire Netonomy
Comverse, a subsidiary of Comverse Technology, Inc., and the world's leading supplier of software and systems enabling network-based multimedia enhanced communication and billing services, has signed a definitive agreement to acquire privately-held Netonomy for approximately $19 million in cash.
Netonomy, a leader in customer self-service, bill analysis and point of sale (POS) solutions, extends Comverse's portfolio of real-time billing and customer management solutions for communication service providers by adding additional tools to increase efficiency and enhance the end-customer experience. Netonomy's self-service application suite allows consumers, enterprises, and retailers to activate and manage subscriptions, buy new products and services, and review, analyze and pay bills using virtually any communication device. Netonomy customers include Bouygues Telecom, several Orange operators, T-Mobile UK, Telstra and Vodafone UK.
Related Channels: OSS/BSS, Mergers & Acquisitions

J:COM acquires majority stake in Cable Net Shimonoseki
Tokyo-based Jupiter Telecommunications Co., Ltd. (J:COM), the largest multiple system operator (MSO) in Japan based on the number of customers served, announced that it will acquire a majority stake in its cable operator affiliate Cable Net Shimonoseki Co., Ltd. via the transfer of a portion of the shares held by local companies. Under the terms of the agreement, Cable Net Shimonoseki will become a consolidated subsidiary of J:COM.
Cable Net Shimonoseki Co., Ltd. provides multichannel cable television, high-speed Internet access, primary fixed-line telephony and mobile phone services under the J:COM brand in Shimonoseki, a city in the Yamaguchi prefecture in Japan.
Established as a 100% subsidiary of J:COM in 1996, local companies began to acquire equity in Cable Net Shimonoseki after the City of Shimonoseki did so in 1997. Since then, this growing business has been managed by J:COM in cooperation with the local community.
The present agreement was reached in close consultation with approximately 60 local shareholder companies. The stock purchase is expected to be complete by the end of September, 2006, with J:COM ultimately owning over 60% of the outstanding equity in Cable Net Shimonoseki.
Going forward, J:COM will continue to operate Cable Net Shimonoseki as an integral provider to the local community, though the company will hold a larger operational and financial stake in Cable Net Shimonoseki’s business.
Related Channels: Cable MSO, Mergers & Acquisitions

International investor group acquires Asia Netcom
China Netcom Group (CNCG) and China Netcom HK has completed the sale of its entire 100% ownership of Asia Netcom to an Investor Group led by Ashmore Investment Management Limited, Spinnaker Capital Limited and Clearwater Capital Partners.
The total value of the deal is at US$402 million. Components of this transaction include US$169 million for the international service unit of the company, which is part of CNCG HK's public listing with the NYSE and SEHK, as well as US$233 million for the company's pan-Asian submarine cable network.
"Going forward, CNCG has every intention to maintain a strategic business relationship with Asia Netcom, leveraging off the synergies we have built over the past three years," said Zuo Xunsheng, President of CNCG. "For CNCG, this deal is simply a move towards the restructuring of our international strategy in order to further enhance the value of our state owned assets."
"Since the launch of Asia Netcom in 2003, we have established a strong portfolio of innovative service offerings and the Company has grown above industry average at a year-over-year rate of 18 percent," said Bill Barney, Asia Netcom's President and CEO. "We thank China Netcom for their strong support over these past few years and we look forward to continuing our strategic business partnership as we strengthen our market presence in China, as well as in key countries throughout Asia Pacific and beyond."
Barney added that the Company's financial and operational metrics continue to strengthen -- a solid reflection of the industry's robust growth and Asia Netcom's strong position in the enterprise and carrier markets as it continues to focus on strengthening its foundation of combining leading edge MPLS technology with a comprehensive portfolio of end-to-end communications services and network solutions.
Related Channels: China, Mergers & Acquisitions

Cisco to acquire Arroyo Video Solutions for $92 million in cash
Cisco Systems announced a definitive agreement to acquire privately-held Arroyo Video Solutions, Inc., a leading provider of next-generation solutions for on-demand television and related consumer services.
The Arroyo solution is designed to deliver exceptional scalability, service availability and operational simplicity -- offering a highly extensible platform for video-on-demand today and emerging time-shifted services in the future. The integration of the Arroyo platform into the Cisco IP-NGN (Next Generation Network) architectural framework will help enable carriers to accelerate the creation and distribution of network delivered entertainment, interactive media and advertising services across the growing portfolio of televisions, personal computers, mobile handsets and emerging media capable devices in our increasingly connected lives.
"The entertainment industry is going through a major shift while consumer desire for personalized on-demand service is on the rise. The industry is quickly evolving from pure video-on demand to anything-on-demand with any content delivered to any end device. Cisco's next generation network strategy offers service providers the ability to make this vision a reality," said Michelangelo A. Volpi, Cisco senior vice president and general manager, routing and service provider technology group. "With the addition of Arroyo's innovative software, which offers flexibility in content delivery, service providers will be in a position to serve content how, when and where consumers want it."
Related Channels: Video, Mergers & Acquisitions

IQE completes acquisition of Emcore's EMD
EMCORE Corporation, a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite, and solar power markets, has completed the sale of the Company's Electronic Materials & Device division (EMD) to a wholly owned subsidiary of IQE, plc (IQE) as previously announced on July 19, 2006.
IQE, headquartered in Cardiff, Wales with United States operations in Bethlehem, Pa., purchased certain of the assets including inventory, fixed assets, and intellectual property of EMD for a total transaction value of $16 million.
IQE was formed in May 1999 by the merger of two epitaxial wafer companies supplying electronic and optoelectronic materials produced using MOCVD (metal organic chemical vapor deposition) and MBE (molecular beam epitaxy) equipment platforms. EMD utilizes MOCVD technology developed by EMCORE to produce both GaAs and GaN based transistor wafers for use in power amplifiers and switches in GSM, CDMA multiband wireless handsets, Wi-MAX, Wi-Fi, cellular handsets, and in wireless LAN applications.
IQE will continue to operate EMD in the Somerset, NJ facility. All 56 employees of EMD have been transferred to IQE.
Related Channels: Chipsets, Wireless, Mergers & Acquisitions

Russia's MTS extends option to buy 26% in Uzbekistan's Uzdunrobita
Russia's largest mobile operator Mobile TeleSystems, or MTS, has extended a put option for a 26% stake in its Uzbekistan-based subsidiary Uzdunrobita for 12 months to July 14, 2008.
MTS currently holds 74% in Uzdunrobita. Thus the option would bring MTS' stake in Uzdunrobita to 100%. The price of the stake will be determined by a major international investment bank, MTS said.
MTS bought the 74% stake in Uzdunrobita in August 2004 from two private companies for U.S. $121 million and signed a 3-year put-and-call option to buy the remaining 26% stake for at least $37.7 million.
Uzdunrobita is the largest mobile communications operator in Uzbekistan, providing GSM-900/1800 services across the whole of the country. Its subscriber base stood at 895,000 users as of July 31.
Related Channels: Wireless, Mergers & Acquisitions

Hong Kong tycoon reportedly seeks 60% stake in Taiwan's cable TV operator China Network Systems
The youngest son of Hong Kong's richest man Li Ka-shing reportedly plans to fork out 24 billion Taiwan dollars (733M US dollars) to secure a 60% stake in Taiwan's biggest cable TV operator China Network Systems Co , according to a media report.
Showing his determination to branch out into Taiwan, Richard Li, chairman of Hong Kong's biggest phone operator PCCW Ltd , will visit Taiwan this week with plans to pay 45,000 Taiwan dollars (1,375 US dollars) per subscriber to outbid its rivals.
Macquarie Media Group, Newbridge Capital, Carlyle Group and Goldman Sachs are reportedly interested in bidding as well.
China Network currently has 1.1 million subscribers, with a 26.2% market share. The firm has planned to sell shares owned by Taiwan's Koos Group and the Hong Kong-based Star Group Ltd in a package deal, and has hired Morgan Stanley as its financial consultant.
PCCW, however, denied the report, saying the company has never contacted China Network regarding the share purchase.
The company also refused to comment on the story related to a personal investment by the younger Li.
Related Channels: Video, Cable MSO, Mergers & Acquisitions

Georgia PSC approves AT&T-BellSouth merger
The Georgia Public Service Commission (PSC) voted 3-2 to approve the $67 billion merger of AT&T Inc. and BellSouth Corp. subject to several conditions.
Also in a 3-2 vote, the PSC turned down motions to require the merged companies to offer stand alone DSL service.
The PSC said AT&T/BellSouth must continue to comply with all obligations of an incumbent local exchange carrier under Georgia law and the Telecommunications Act of 1995; must ask for and get permission before discontinuing any intrastate long distance service; must report monthly to the PSC on its progress developing stand-alone Digital Subscriber Line (DSL) Service; must file documentation to prove that every central office in Georgia has been upgraded to be DSL capable.
The PSC also said it will begin a separate proceeding six months after the merger is completed to examine the effects of the merger on Georgia and what actions should be taken if any.
Related Channels: Mergers & Acquisitions

KPN acquires CSS Telecom
KPN has acquired Dutch communication solutions company CSS Telecom. CSS Telecom gives advice on, supplies, implements and maintains business communication total solutions for spoken, visual and data communication. CSS Telecom targets small and medium businesses and the health care sector in particular.
The acquisition fits in with KPN’s aim of further strengthening its position in the business communication solutions market. CSS Telecom’s strong position in the market for small and medium businesses is also in keeping with the ambition of better servicing the small and medium business sector. Moreover, CSS Telecom’s focus on the health care sector dovetails well with KPN’s earlier initiatives in health care, such as E-Zorg and Zorg op Afstand.
In conjunction with the takeover of Newtel Essence, which was announced recently, the acquisition of CSS Telecom further strengthens KPN’s position in the field of Avaya solutions.
CSS Telecom has branches in Groningen, Utrecht, Rotterdam and Venlo has 191 employees. Sales in 2005 totaled EUR 28,6 million.
Both works councils have advised in favor of the takeover.
Related Channels: Mergers & Acquisitions

Qualcomm to acquire IMS software and test services provider Qualphone
San Diego-based QUALCOMM Incorporated announced that it will acquire San Diego-based Qualphone Inc., a leading provider of IP-based Multimedia Subsystems (IMS) embedded client software solutions for mobile devices and interoperability testing (IOT) services. The acquisition of Qualphone's products and resources will help QUALCOMM further accelerate the delivery of multimedia-capable, feature-rich 3G solutions on top of the emerging IMS and Multi Media Domain (MMD) architectures to WCDMA/UMTS and CDMA2000(R) markets. Completion of the acquisition is expected later this month.
Qualphone's IMS client platform provides mobile operators with a technical and commercial framework for offering services using a wide range of integrated and interactive media, voice, text, picture and video technologies. Qualphone's 3G/IP multimedia embedded client framework can be tailored to the specific requirements of individual operators and handset manufacturers, and its end-to-end IOT services help reduce time to market. QUALCOMM's acquisition of Qualphone enhances the Company's continuing global efforts to provide a highly efficient launch path for new 3G products and services.
QUALCOMM will pay approximately $18 million in cash for Qualphone.
Related Channels: Test, Wireless, VoIP, Video, Mergers & Acquisitions

Cisco completes acquisition of Meetinghouse Data Communications
Cisco Systems has completed the acquisition of privately-held Meetinghouse Data Communications, Inc. of Portsmouth, NH. On June 29, 2006, Cisco announced a definitive agreement to acquire Meetinghouse Data Communications, a provider of a client-side 802.1X supplicant security software that allows enterprise customers to restrict network access to only authorized users and/or host devices attempting to gain access to networked resources through both wired and wireless media.
With the close of the transaction, the Meetinghouse team and products have been integrated into Cisco's Wireless Networking Business Unit, reporting to vice president and general manager, Brett Galloway. The Meetinghouse products have been integrated into the Cisco product portfolio and are now available for order on the Cisco Global Price List.
Related Channels: Wireless, Security, Mergers & Acquisitions

Moscow-based Golden Telecom acquires Telcom
Moscow-based Golden Telecom, Inc. ("Golden Telecom" or the "Company") announces the acquisition of a 100% interest in Telcom LLC ("Telcom") -- an alternative telecommunications services operator in Nizhny Novgorod, third largest city of Russia.
Telcom was established in 1999 and provides local telephone services in Nizhny Novgorod. Telcom communication network operates 9,000 copper lines which cover the Avtozavodsky district of the city. The overall numbering capacity allocated to Telcom is 17,000 numbers, of which more than 12,000 are already in use.
Golden Telecom will be able to provide broadband access services to some 9,000 customers by installing all necessary asymmetric digital subscriber line ("ADSL") equipment on Telcom's network.
Commenting on this acquisition, Jean-Pierre Vandromme, Golden Telecom's Chief Executive Officer, noted: "Provision of broadband access services to corporate clients, small businesses, and mass market is a major component of the Company's business strategy. The acquisition of Telcom provides us with the access to new subscribers interested in high quality voice services as well as in broadband Internet access. Acquiring Telcom, with its 9,000 customers and additional numbering capacity, Golden Telecom's position in the city and contribute to our further regional expansion."
Related Channels: xDSL, Mergers & Acquisitions

Audiocodes completes acquisition of Netrake
Israel-based AudioCodes, a leading provider of Voice over Packet (VoP) technologies and Voice Network products, today announced the successful completion of its previously announced acquisition of US-based Netrake Corporation, a leading provider of Session Border Controllers (SBC) and Security Gateway solutions. SBCs enable connectivity, policies and security for real-time sessions such as VoIP and video when traversing IP to IP networks. Security Gateways enable secure real-time sessions across Wi-Fi, broadband and wireless networks in Fixed Mobile Convergence (FMC) deployments.
Under the definitive agreement, announced on July 6, 2006, Netrake Corporation was acquired for a purchase price of $10 million, which was paid in cash at closing.
"We are very pleased to announce the completion of the Netrake Corporation acquisition," said Shabtai Adlersberg, Chairman, President and CEO of AudioCodes. "We are now better positioned to offer a richer product portfolio comprising of Session Border Controllers and Security Gateways in addition to our Media Gateway and Media Server products. The integration of this expanded product line adds scale and strength to our positioning with service providers and enhances our IMS offering to enable network convergence."
"The employees in addition to our customers and partners are very excited about Netrake joining AudioCodes," said Bruce Hill, CEO of Netrake. "AudioCodes is a company with a proven ability to execute and grow and has demonstrated to us a strong commitment to pursue a leading role in the Session Border Controller and Security Gateway markets."
Related Channels: VoIP, Mergers & Acquisitions

PAETEC, US LEC to merge in $1.3B transaction
US LEC Corp., a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, and PAETEC, a privately-held supplier of communications solutions to medium and large businesses and institutions, announced Monday that they have signed a definitive agreement to merge the two companies.
On a pro forma basis, the company will generate nearly $1 billion in revenue, $187 million in adjusted EBITDA, and $109 million in free cash flow (adjusted EBITDA minus capital expenditures). Cost saving synergies of $25 million have been identified in the first year after closing, and $40 million annually beginning in 2008. The combined company will have over 45,000 enterprise customers, consisting of medium and large businesses and institutions. It will operate in 52 of the top 100 Metropolitan Service Areas (MSAs) in the U.S., with a leading presence in the Eastern U.S., as well as several other major markets across the country.
Under the terms of the merger agreement, which was approved unanimously by the boards of directors of both companies, PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("New PAETEC"). Taking into account outstanding rights to acquire shares in the new holding company in the future, US LEC security holders will own approximately 1/3 and PAETEC security holders will own approximately 2/3 of the new holding company. Upon closing, US LEC shareholders will be entitled to receive one share in the new holding company in exchange for each share of US LEC that they currently own, and PAETEC shareholders will be entitled to receive 1.623 shares in exchange for each share of PAETEC that they currently own. Based on US LEC's closing stock price on August 11, 2006, the total enterprise value of the new company will be approximately $1.3 billion. Upon completion of the transaction, "New PAETEC" expects to be listed on the NASDAQ Stock Market under the ticker "CLEC."
Related Channels: VoIP, Mergers & Acquisitions

Tiscali UK to merge with Video Networks Ltd (VNL)
Tiscali UK and Video Networks International Ltd announce have reached an agreement whereby their respective UK market operations would be fully integrated.
Pursuant to this agreement, Video Networks International Ltd (VNIL) would contribute 100% of their UK operations - Video Networks Ltd (VNL) - into Tiscali UK Ltd, fully owned subsidiary of Tiscali SpA, in exchange for an interest in Tiscali UK. As a result, Tiscali SpA would control 88.5% of Tiscali UK, while VNIL would own 11.5%. The agreement is expected to become effective in August 2006, upon fulfillment of certain technical conditions. Furthermore, the shareholding of VNIL in Tiscali UK could be increased to up to 20% if certain performance targets are reached. Tax losses carried forward would also be contributed to Tiscali UK by VNIL at a discount and payable on a deferred basis and according to their expected utilisation in the future. Tiscali SpA has the right to acquire and VNIL to sell VNIL's stake in Tiscali UK starting from three years after closing or earlier upon certain trigger events.
Following this integration, Tiscali UK will immediately have more than 1.3 million DSL customers, of which 350,000 customers are taking voice and broadband, over 45,000 will be IPTV subscribers, and an unbundled local loop ("ULL") network covering over 300 BT exchanges with in excess of 220,000 ULL customers.
"This agreement represents a very important step for the Tiscali Group not only in the UK market, where Tiscali's position would be further strengthened, but also in the other markets, allowing Tiscali to position itself as a true Triple Play operator. The Triple Play offer in the UK will be launched by the end of the year and will be immediately followed by the launch of the service in Italy and then in the other markets." says Tommaso Pompei, CEO of the Tiscali Group.
Related Channels: Video, xDSL, Mergers & Acquisitions

China Datacom to acquire 3G VAS company Supremacy International
China Datacom will acquire 3G value-added service (VAS) company Supremacy International Limited for 30 million China Datacom shares.
The acquisition will enable China Datacom to tap into the emerging 3G related VAS market in China.
China is now the largest mobile telecommunication market in the world with over 426 million mobile phone subscribers, accounting for 20% of the world total number of mobile users.
China revenues created from 3G related businesses is expected to increase from about US$2.8 billion to US$28.3 billion from 2006 to 2010.
Closing of the transaction is expected to take place by the end of the third quarter of 2006.
Related Channels: China, Wireless, Mergers & Acquisitions

Oracle denies acquisition rumor
In response to British media reports that Oracle will acquire Chinese software company Kingdee for US$150 million, Oracle's spokeswoman Chi Cho Hea in the Asia Pacific region said that the report was only speculation.
British media reported last week that Oracle would spend US$150 million buying Shenzhen-based software company Kingdee, and the transaction would be conducted roughly half in cash and half in stock, and be completed by the end of this year.
Related Channels: China, OSS/BSS, Mergers & Acquisitions

Potential suitors for Goldman's stake in New York Yankees TV Network
The New York Post reported Friday that Goldman and a group of investors are looking to sell their stake in YES, the New York Yankees television network. Analysts are predicting a return of more than 300% on the investment, which was made less than five years ago.
The YES Network was founded in 2001 with an initial value of $850 million and is said to be now worth close to $3 billion. Goldman, a private equity group, and a group of investors led by former New Jersey Nets owner Ray Chambers are looking to sell, while George Steinbrenner and the Yankees will retain their stake.
Several potential suitors were named in the report, including Comcast. Verizon and Disney's ESPN are also thought to be interested.
Related Channels: Video, Mergers & Acquisitions

Inter-Tel rejects Mihaylo Group's unsolicited acquisition proposal
US-based Inter-Tel, Incorporated announced that a Special Committee of its Board of Directors, with the assistance of its financial and legal advisors, has rejected as inadequate an unsolicited acquisition proposal from Steven G. Mihaylo and Vector Capital (the "Mihaylo Group") to purchase all shares of Inter-Tel, other than those held by Mr. Mihaylo, for cash at a price of $22.50 per share.
The Special Committee concluded that the Mihaylo Group's proposal does not reflect the intrinsic value of Inter-Tel and its advanced technology and consequently fails to provide appropriate value to all Inter-Tel shareholders. The Special Committee believes that the continued execution of management's current long-term strategy, including the rollout of the exciting new Inter-Tel 5600 and version 2.0 software for the Inter-Tel 5000 family, the forthcoming introduction of the 7000 communications systems, and enhancements to Inter-Tel's portfolio of advanced software applications represents a superior alternative for enhancing shareholder value. The Special Committee also believes that accepting the Mihaylo Group's submitted offer, before the company has had the opportunity to fully implement its strategy, would deprive shareholders other than Mr. Mihaylo from realizing Inter-Tel's intrinsic value, particularly in light of the Company's significant recent investment in research and development ("R&D") on these new products, software applications, and solutions.
Related Channels: Mergers & Acquisitions, VoIP, OSS/BSS

CommScope decides not to pursue its proposal to acquire Andrew at the present time
CommScope, Inc. Friday issued the following statement regarding its proposed acquisition of Andrew Corporation
"After careful consideration with our advisors, CommScope has decided not to pursue its proposal to acquire Andrew Corporation at the present time. CommScope's operational excellence and financial discipline have made us a global leader in the 'last mile' of telecommunications. We intend to continue building upon our leadership position and we are confident that CommScope is poised to continue creating value for its stockholders."
Related Story: Andrew rejects CommScope's acquisition proposal and call the $1.51 billion cash offer "wholly inadequate" (See Mergers & Acquisitions)
Related Channels: Mergers & Acquisitions, Photonics

Mexico's Telmex buys 3.4% of Portugal Telecom
Mexican telecom giant Telmex has become Portugal Telecom's fifth-largest shareholder after buying a 3.4% stake.
Portugal Telecom (PT), which is resisting an 11.1 billion euro ($14.19 billion) bid from smaller rival Sonaecom, said in a statement Telmex now owned 38.46 million of its shares through "companies with whom Telmex is in a dominant or group relationship".
Portugal Telecom said last week it intended to give shareholders 3.5 billion euros in special dividends and direct payments over three years if they reject Sonaecom's offer. It also offered to spin off media and Internet unit PT Multimedia to shareholders.
Related Channels: Mergers & Acquisitions

Rumor Mill: China Unicom reportedly to merge with China Netcom
Hong Kong media reports that China Unicom might sell its CDMA network to China Telecom and merge with China Netcom.
A China Telecom representative says they have not received such a notice.
Related Rumor Mill: China Telecom reportedly to buy China Unicom's CDMA network (See China)
Related Channels: China, Wireless, Mergers & Acquisitions

Rumor Mill: China Telecom reportedly to buy China Unicom's CDMA network
China Telecom wants to pick up China Unicom's CDMA network to expand its business, the Ming Pao Daily News and the Hong Kong Economic Journal reported, without citing sources.
"The final decision will be made by the government. There is no official announcement at the moment," the Ming Pao said, quoting a source close to China Telecom.
The companies were not immediately available for comment.
Related Channels: China, Wireless, Mergers & Acquisitions

China Mobility Solutions to acquire control of Beijing Topbiz Technology Development Company
China Mobility Solutions has entered into an agreement to acquire control of Beijing Topbiz Technology Development Company, a Chinese company providing SMS services to banks in China.
China Mobility Solutions will directly acquire 49% of Topbiz and indirectly acquire control of an additional 11% of Topbiz, giving it effective control of 60% of the company. China Mobility Solutions will pay Topbiz US$3,700,000 in cash and issue 8,081,818 new shares in a Regulation S offering at the deemed price of US$0.46.
Topbiz generated US$2.67 million in revenue in 2005, and recorded US$590,000 of deferred revenue. It made a net profit of US$785,000 in 2005, and had US$1.25 million cash-on-hand as of December 31, 2005.
Topbiz develops and customizes SMS-based banking systems for banks in China. Through the SMS banking platform Topbiz offers, banks can provide a variety of customized financial information to their client base, dramatically increase the satisfaction of clients and become more appealing to new customers.
Topbiz's SMS banking system offers convenience, security and simplicity, and is becoming popular with banking clients in China.
Related Channels: China, Wireless, Security, Mergers & Acquisitions

IBM to acquire FileNet for $1.6 billion
IBM and FileNet Corporation have entered into a definitive agreement for IBM to acquire FileNet, a publicly held company based in Costa Mesa, Calif., in an all-cash transaction at a price of approximately $1.6 billion, or $35 per share. The acquisition is subject to FileNet shareholder approval, regulatory reviews and other customary closing conditions. It is expected to close in the fourth quarter of 2006.
FileNet is a leading provider of business process and content management solutions. This acquisition builds upon IBM's Information on Demand initiative, launched in February 2006, to address the growing market opportunity around combining IBM's software, services, partners and industry consulting expertise to improve clients' business performance. The Information on Demand strategy aims to provide clients with data exactly when and how they need it to improve their business processes, quickly respond to market needs and rapidly identify new business opportunities.
A convergence of challenges facing businesses today - including globalization, mergers and acquisitions, information overload and regulatory compliance -- are driving companies to find new ways to gain insight from their information so they can use it to grow their business. IBM's acquisition of FileNet aims to further the company's Information on Demand initiative, IBM's strategy for addressing this growing market opportunity.
"Freeing up information contained in content management systems is critical to unlocking the potential of information to improve business processes and performance," said Ambuj Goyal, general manager, IBM Information Management. "The combination of IBM and FileNet will provide our customers and partners with industry-focused content management solutions that offer a new level of business value."
Related Channels: OSS/BSS, Storage, Mergers & Acquisitions

Nuova to become a majority-owned subsidiary of Cisco
Cisco Systems Inc. has made an investment in Nuova Systems Inc. to accelerate next-generation product development in its data center.
Cisco has committed certain technology and $50 million of funding to Nuova Systems with the possibility of up to $42 million in additional funding in the future.
Nuova Systems will become a majority-owned subsidiary of Cisco. It will be 80% owned by Cisco, with the remaining 20% held by employees of the subsidiary. Formed last summer, Nuova has 76 employees, including Mazzola, Cisco's former chief development officer, and three other former Cisco executives, Prem Jain, Luca Cafiero, and Soni Jiandani. All are expected to return to Cisco, working for the new subsidiary, if the transaction goes through as expected.
Cisco has the option to buy the remaining 20% and if Cisco exercises this option, the transaction would occur in late fiscal year 2008 or early fiscal year 2009.
The potential payouts made under the option are based on the success of Nuova Systems' products sold through Cisco, with a minimum potential payout of $10 million and a maximum of $578 million.
Related Channels: Switching & Routing, Mergers & Acquisitions, Funding

CommScope disappointed by Andrew's decision to reject acquisition proposal
CommScope Inc., which makes cable for data, voice and video transmission, said it was "disappointed" that Andrew Corp. rejected its acquisition proposal and said it intends to continue its strategy.
Andrew rejected CommScope's unsolicited bid, calling its $1.51 billion cash offer "wholly inadequate".
Late Wednesday, Andrew reached a mutual agreement with merger partner ADC Telecommunications Inc. of Eden Prairie, Minn., to terminate their $1.6 billion stock merger announced in May, citing a lack of shareholder support.
Related Channels: Mergers & Acquisitions

Andrew rejects CommScope's acquisition proposal and call the $1.51 billion cash offer "wholly inadequate"
The board of directors of Andrew Corporation, a global leader in communications systems and products, has voted unanimously to reject the unsolicited proposal from CommScope, Inc. to acquire Andrew for $9.50 per share in cash. After a thorough review, the board, in consultation with its advisors, concluded that CommScope's proposal is wholly inadequate and not in the best interests of its shareholders.
"The board carefully reviewed and considered CommScope's proposal and found it does not adequately reflect the value of Andrew, its business prospects, and its industry-leading products, global customer base, and skilled global workforce," said Ralph Faison, president and chief executive officer, Andrew Corporation.
Related Channels: Mergers & Acquisitions

ADC and Andrew mutually agree to terminate their pending merger
ADC and Andrew Corporation have entered into an agreement to terminate their agreement and plan of merger, which the parties entered into as of May 30, 2006.
The companies believe that current market considerations raised significant questions about the ability to obtain necessary shareholder approval. Therefore, Andrew and ADC have agreed to terminate the merger agreement without liability to either party. To effect the mutual termination, Andrew has agreed to pay ADC $10 million. In addition, Andrew has agreed that ADC would be paid another $65 million in the event Andrew effects a business combination transaction within 12 months.
Related Story: CommScope bids $1.51B cash for Andrew, topping rival ADC's stock offer (See Mergers & Acquisitions)
Related Channels: Mergers & Acquisitions

Liberty Global to acquire Czech's second-largest cable operator Karneval
Denver-based Liberty Global, Inc. ("Liberty Global"), through one of its affiliates, has entered into an arrangement to purchase Karneval s.r.o. and Forecable s.r.o. ("Karneval"), the second largest cable operator in the Czech Republic for an estimated purchase price of EUR 322.5 million, subject to regulatory approval.
Karneval offers cable television and broadband services to residential customers. At June 30, 2006, Karneval had approximately 310,000 revenue generating units ("RGUs") including 253,000 video RGUs and 57,000 broadband Internet RGUs.
Mike Fries, President and CEO of Liberty Global said, "We are pleased to announce this transaction in the Czech Republic, one of our fastest growing markets in Central Europe. Upon closing, the acquisition of Karneval will consolidate UPC's leadership position in the Czech Republic with approximately 800,000 RGUs. The combined UPC Czech/Karneval will be well positioned to participate in the rapid growth of advanced broadband services in the region. Considering that we anticipate closing this transaction towards the end of the year, the purchase price represents a 9.8 multiple on our estimate of Karneval's 2007 operating cash flow, before transaction costs, under IFRS accounting standards including anticipated realized synergies in the first year. Additionally, we anticipate significant additional synergies from combining Karneval with our existing UPC Czech business will be realized over time. In the meantime, we look forward to working with Czech regulators to get the transaction approved as soon as possible."
Related Channels: Video, Cable MSO, Mergers & Acquisitions

Spirent Communications acquires Imperfect Networks
Spirent Communications plc ('Spirent') has acquired the business of Imperfect Networks, Inc. ('Imperfect Networks'), a US based developer of security testing solutions. The acquisition will enable Spirent to deliver enhanced security testing solutions to its customers across a number of markets.
Spirent is paying an initial consideration of $4.0 million (£2.2 million), payable in cash on completion, with up to a further $4.0 million (£2.2 million) payable depending on the satisfaction of certain technical milestones and revenues to be achieved in 2007. Imperfect Networks is based in Massachusetts and has 11 employees.
Spirent has been the exclusive re-seller of Imperfect Networks' ThreatEx product since 2005 with revenues growing strongly in the first half of this year. When combined with Spirent's market-leading AvalancheTM product, it provides global network equipment manufacturers, service providers and enterprises with a powerful tool for verifying defenses against malicious attacks and helps reduce the risk of costly network downtime due to network threats such as worms, viruses and attacks on voice over IP (VoIP) and wireless LAN services. The ThreatEx business and technology will be integrated into Spirent's Performance Analysis division.
Anders Gustafsson, Chief Executive, commented: 'The acquisition is in line with our strategy to expand our communications business, drive profitable growth and deliver shareholder value. Our major customers are increasingly demanding enhanced security testing solutions. Combining the ThreatEx technology with our existing solutions will strongly position us to meet their needs.'
Related Channels: Test, Security, Mergers & Acquisitions

Shaw Communications to acquire Norcom
Canada'-based Shaw Communications Inc. has entered an agreement to acquire Norcom Telecommunications Limited ("Norcom"), subject to CRTC approval. Norcom operates cable and Internet systems located in Northwestern Ontario including Kenora, Red Lake, Sioux Lookout, Ear Falls and Ignace, together with the CTV television station, CJBN-TV, in Kenora.
"We are truly delighted with the acquisition of Norcom," said Peter Bissonnette, President of Shaw Communications Inc. "Shaw has been proud to serve customers in Winnipeg and Northwestern Ontario, including Thunder Bay, Fort Frances and Dryden, for many years, and we look forward to providing the same leading entertainment and communications services to Norcom's customers."
Related Channels: Video, Mergers & Acquisitions

Atheros completes acquisition of ZyDAS
California-based Atheros Communications, Inc., a leading developer of advanced wireless solutions, has completed the acquisition of ZyDAS Technology Corporation, a Taiwan-based fabless IC design company specializing in high-performance IEEE 802.11 wireless LAN (WLAN) semiconductor and software solutions for PC, mobile and embedded applications. Atheros announced on April 24, 2006, that it signed a definitive agreement to acquire ZyDAS.
With the acquisition of ZyDAS, Atheros has significantly enhanced its world-class engineering team, added to its industry-leading WLAN product portfolio and provided an additional R&D center to support Atheros' ongoing global expansion into new wireless markets. Atheros has established its new Taiwan Research & Development Center in ZyDAS' former headquarters. The facility is lo