Santa Clara, CA | March 21, 2006 — Riverstone Networks, Inc. announced today that Lucent Technologies (NYSE:LU) was declared winner of the auction for the sale of Riverstone's business.
Lucent's final bid was $207 million in cash, as well as certain modifications to the Asset Purchase Agreement originally signed by the parties on February 7, 2006. The terms are subject to final approval by the U.S. Bankruptcy Court, which is scheduled for Thursday, March 23, 2006.
"We're excited to become a part of Lucent, and believe our customers will benefit from end-to-end solutions available from a single source as a result of the combination of our businesses," said Riverstone Networks President and CEO Oscar Rodriguez. "We are pleased that our stockholders have realized greater value as a result of the auction process. We also appreciate the commitment to the company shown by our customers, vendors and employees throughout this process."
Ken Wirth, president, Multimedia Network Solutions, at Lucent, said, "We are pleased to have won the auction for Riverstone Networks assets, and look forward to receiving the final court approval and other clearances that will allow us to begin the integration process. Riverstone's people and products will play an important role in advancing Lucent's end-to-end converged Ethernet/optical solutions and helping us in our efforts to take share of a growing Ethernet carrier market."
The parties currently expect the transaction to close in early April.
Riverstone Networks, Inc. is a leading provider of carrier Ethernet infrastructure solutions for business and residential communications services. Riverstone's Ethernet router portfolio uniquely delivers the reliability that allows carriers to meet the triple play -- voice, video and data -- service requirements of their customers in a cost-effective and scalable way. Riverstone allows carriers to offer new services over existing revenue-generating networks permitting them to evolve to a next generation Ethernet infrastructure.
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