In an effort to spearhead in the fast growing broadband and VoIP market, Ericsson has decided to acquire Reback, which has nearly 50 million broadband connections of major telephone carriers.
San Jose-based Redback Networks manufactures advanced routers for the Triple play services such as voice, video and data and other mobility services. The Swedish telecom equipment giant will acquire Redback for about $US2.1 billion or $25 a share.
As per joint agreement, Redback would keep back its management team and its Silicon Valley properties and operate as a subsidiary of Ericsson. The deal is likely to end earlier next year. It is subject to regulatory approval, reports the Mercury News.
Explaining Ericsson’s decision to acquire Redback, company’s CEO Carl-Henric Svanberg comments,
Redback has always had a well-known technology advantage over its larger routing competitors. Today’s agreement accelerates Ericsson’s ambition to build leadership in the fast-growing broadband and IP services market.
