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VIRTUALISATION Ericsson to buy Redback Networks for $US2.1 billion
VIRTUALISATION Ericsson to buy Redback Networks for $US2.1 billion | Ericsson to buy Redback Networks for $US2.1 billion |
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| by Stuart Corner | |
| Wednesday, 20 December 2006 | |
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The deal is likely to deal Redback's rival router maker, Juniper Networks a double blow. It will give Redback much greater financial resources and market access and Ericsson is presently a reseller of Juniper's routers, a relationship which may not continue. The two companies formed a joint venture in 2000, Ericsson Juniper Networks Mobile IP, 60 percent owned by Ericsson, to provide mobile Internet routing products to wireless network operators building GPRS and 3G networks. According to Ericsson it aimed to "combine our mobile IP expertise with Juniper's competence in IP routing systems to facilitate the interaction between mobile voice networks and IP data networks." Redback president and CEO, Kevin DeNuccio, said: "We believe Redback now will have the global reach and financial resources to accelerate its own routing technology innovation and grow market share faster than our traditional routing competitors." According to Ericsson CEO, Carl-Henric Svanberg, "Redback has always had a well-known technology advantage over its larger routing competitors in broadband services edge routing. We believe the combined strengths of both companies in mobility and IP routing will create significant value for customers and shareholders." |
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