Redback Networks Spends $4.3 Billion To Acquire Net Software Maker Siara - Company Business and Marketing

EDP Weekly's IT Monitor, Dec 13, 1999

Buy Will Extend Redback's Solutions For Access & Services Market

Redback Networks Inc. is buying Siara Systems of Mountain View, Calif., in a deal valued at $4.3 billion. With the addition of Siara's product portfolio and network operations software, Redback plans to extend its service creation and management capabilities across the entire "New Access Network," a market expected to be worth over $15 billion by 2000 and grow rapidly thereafter -- an opportunity substantially larger than Redback's current market. Redback also gets a roster of seasoned executives and over 170 engineers.

"We expect the combination of Siara Systems and Redback to create a powerful supplier in the communications industry, focused on serving the next generation access and service creation requirements of carriers and service providers," says Dennis Barsema, CEO of Redback.

Siara's portfolio of products and network operations software -- optimized for both access and metropolitan networks -- is designed to enable service providers and carriers to deliver both traditional time division multiplexing (TDM) and IP-based services with carrier grade reliability, security, and scalability.

Redback will issue 31.3 million shares for all outstanding shares, options and warrants of Siara. The merged company will retain the name of Redback Networks, a Sunnyvale, Calif., provider of advanced networking solutions that enable carriers, cable, multiple system operators (MSOs), and service providers to deploy high-speed broadband access to the Internet and corporate networks.