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Redback buys Siara for $4.3 billion
High-speed Net access equipment maker Redback is investing billions to acquire optical networking and software from Siara.
High-speed Internet access equipment
supplier Redback Networks Inc. is acquiring networking and
software company Siara Systems for about $4.3 billion in stock,
the New York Times reported on Monday.
Redback (Nasdaq: RBAK) seeks to use optical networking equipment and software being developed by privately held Siara to sell a wider range of products that make it easier to send information across high-speed, or broadband, networks.
Siara currently sells no products, but is expected to begin testing some in mid-2000.
The combined company will keep the Redback name, and Siara Chief Executive Vivek Ragavan will be named president of the combined operation, the report said.
Redback shareholders will own 62 percent of the new company and Siara stakeholders will own 38 percent. The boards of the two California-based companies approved the deal, the report said.