Ericsson buys Redback Networks

Swedish telecommunications equipment supplier Ericsson is to buy US company Redback Networks for US2.1 billion.

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By  Administrator Published  January 11, 2007

The move will give Ericsson the networking equipment vendor’s expertise in data-routing technology, enabling it to strengthen its position in broadband and IP services.

Following the completion of the deal, slated for early 2007, Redback will retain its management team and operate as a wholly owned subsidiary of Ericsson.

Carl-Henric Svanberg, CEO of Ericsson, said in a statement that the agreement would accelerate Ericsson’s ambition to build leadership in the fast growing broadband and IP services market.

“We believe the combined strengths of both companies in mobility and IP routing will create significant value for customers and shareholders,” he said.

The market for IP edge routing, Redback’s main business segment, is forecast to top US$5 billion by 2009, according to research firm The Yankee Group.

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