16 May 2003 Paris and Mountain View, CA Lightwave -- Alcatel has entered into a definitive agreement to acquire TiMetra Inc., a privately held, Silicon Valley-based company specialized in IP/MPLS service routing at the network edge. Alcatel expects the acquisition will increase its addressable market for IP equipment.
Under the terms of the agreement, Alcatel agreed to pay approximately 150 million in Alcatel American Depositary Shares (ADSs) and Alcatel shares for the total capital of TiMetra. TiMetra shares and options will be exchanged for a number of Alcatel ADSs and shares to be determined at closing, according to an exchange ratio and within the limits specified in the agreement.
"Alcatel understands the service provider imperative to offer these new, billable [IP-based] data services efficiently and profitably," said Mike Quigley, senior executive vice president of Alcatel. "With this acquisition, we are able to offer our customers a full suite of IP solutions to assist them in capitalizing on the growing market for IP and private data services."
"We are very excited to be joining Alcatel," said TiMetra president and CEO Basil Alwan. "The TiMetra team has delivered the industry's most advanced service router, enabling service providers to efficiently offer multiple revenue-generating and profitable private data services to their end customers. These achievements will be reinforced by Alcatel's worldwide presence, stability, and depth of product portfolio. Together, we will be a powerful contender in the IP market."
Among other criteria, Alcatel based its decision upon an assessment of the quality of TiMetra's product portfolio, management team, and business, as well as recent comparable transactions. Completion of this transaction is subject to approval by TiMetra's shareholders, other customary closing conditions, and receipt of the approval of the Commissioner of the California Department of Corporations. The transaction is expected to close within the third quarter of 2003. Once the acquisition is completed, TiMetra will be integrated into Alcatel USA.