Juniper Networks Inc. has signed a definitive agreement to acquire Unisphere Networks Inc., a Siemens company, in a combined $375 million cash and 36.5 million share stock transaction. Siemens and Juniper Networks have also agreed to enter a global partnership in the field of Internet-Protocol (IP) infrastructure and related systems.
Based upon Juniper Networks closing stock price of $9.85 on May 17, 2002, the deal has an approximate value of $740 million. Upon final closing of the transaction, which is still subject to regulatory approval, service providers and carriers will be offered a scalable IP product and service portfolio on a global scale.
The acquisition, slated to close in the third quarter of 2002, is subject to all required Board approvals, to Hart-Scott-Rodino approval, and certain other customary closing conditions. It is expected to be slightly dilutive to Juniper Networks in 2002 and accretive in 2003. At the close of the transaction, Siemens will own slightly less than 10 percent of the shares outstanding in Juniper Networks.
"Our acquisition of Unisphere Networks highlights the Juniper Networks focus of supplying IP expertise to the leading service providers, carriers, and PTTs throughout the world," contends Scott Kriens, chief executive officer, president, and chairman of the board of Juniper Networks. "These customers will now be able to leverage the global reach of Siemens to utilize both Juniper Networks' and Unisphere Networks' proven IP experience. The result is a broadly available portfolio of core, edge, cable, and mobile IP routing and broadband access platforms."
In addition, partnership agreements will provide for the worldwide presence and customer base of Siemens to leverage Juniper Networks IP product portfolio for the service provider industry to deliver next-generation voice solutions with comprehensive IP routing technology. The relationship underscores Siemens aim to be a key player in the field of Next Generation Networks (NGN) with its SURPASS solution portfolio for the IP convergence of data, voice, and video.
The worldwide reseller agreement will give Juniper Networks access to Siemens sales channels in 190 countries. As a systems integrator with expertise in turnkey NGN projects, Siemens will be able to offer network operators end-to-end solutions comprising softswitches, gateways, and IP routers.
"Siemens IC Networks Group is concentrating on Internet-based convergence of voice and data technologies, broadband technology (emphasis on carrier and enterprise customers), and optical networking," explains Thomas Ganswindt, IC Networks Group president. "As part of this strategy, Siemens is focusing on the components that are necessary to enable real-time communication. These activities at Unisphere were carved out before and have already been integrated into Siemens. Now we can rely on an even stronger partner for IP router technology."
For more information about Unisphere Networks Inc. (Westford, MA), visit the company's Web site at www.Unispherenetworks.com.
Additional information about Juniper Networks Inc. (Sunnyvale, CA) can be found on the company's Web site at www.juniper.net.