Radware set to buy Nortel division

Radware has $137.4 million in cash, giving it the wherewithal for a deal.

Sources inform ''Globes'' that Radware Ltd. (Nasdaq: RDWR; TASE: RDWR) is about to acquire a unit of Nortel Networks Corporation (NYSE; TSX: NT) for $30-50 million. Radware has $137.4 million in cash, including short and long-term investments, giving it the wherewithal for a deal.

Nortel has four business divisions, one of which competes against Radware, Cisco Systems Inc. (Nasdaq: CSCO), and F5 Networks Inc. (Nasdaq: FFIV). The divisions are the Carrier Networks segment, which offers wireline and wireless networks; the Solutions segment, which offers enterprise communications solutions for businesses in various industries; the Metro Ethernet Networks segment, which provides carrier ethernet switching, optical networking, and multi-service switching products; and the Global Services segment, which offers network implementation services.

Radware reportedly wants to acquire all or part of the Metro Ethernet Networks segment.

Nortel's share price fell 98% in 2008, and its current market cap is $144 million. Radware fell 3% at the opening on Nasdaq today to $5.74, giving a market cap of $111 million. Its share price fell 58% last year. The share fell 5.3% on the TASE today to NIS 22.06.

Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018