Juniper Networks to acquire Siemens-subsidiary Unisphere

21 May 2002 -- Juniper Networks will acquire Unisphere Networks Inc., a Siemens company, in a combined USD375m cash and 36.5m share stock transaction.

May 21st, 2002

-- Siemens and Juniper Networks to form global IP partnership

21 May 2002 -- Juniper Networks is buying Unisphere Networks Inc., a Siemens company, in a combined USD375m cash and 36.5m share stock transaction. Siemens and Juniper have also agreed to form a partnership in the field of IP infrastructure and related systems. The deal has an approximate value of USD740m. In due course, say the partners, service providers and carriers will be offered a scalable IP product and service portfolio.

The acquisition, due to complete in Q3 2002, is subject to company board approvals and other conditions. Analysts believe it will be "slightly dilutive" to Juniper Networks in 2002 but accretive in 2003. At the close of the transaction, Siemens will own slightly less than 10 percent of the shares outstanding in Juniper Networks.

Partnership agreements will provide for the global presence and customer base of Siemens to leverage Juniper Networks' IP product portfolio for the service provider industry to deliver novel voice and IP routing solutions. The relationship underscores Siemens' aim to be a key player in the field of Next Generation Networks (NGN) with its SURPASS portfolio for the IP convergence of data, voice and video.

The worldwide reseller agreement will give Juniper Networks access to Siemens' sales channels in 190 countries. As a systems integrator with expertise in turnkey NGN pro-jects, Siemens will be able to offer network operators end-to-end solutions comprising softswitches, gateways and IP routers.

"Siemens IC Networks Group is concentrating on Internet-based convergence of voice and data technologies, broadband technology and optical networking. As part of this strategy, Siemens is focusing on the components that are necessary to enable real-time communication," said Thomas Ganswindt, IC Networks Group President.

"Our acquisition of Unisphere Networks highlights Juniper Networks' focus of supplying IP expertise to the leading service providers, carriers and PTTs throughout the world. These customers will now be able to leverage the global reach of Siemens to utilise both Juniper Networks and Unisphere Networks? proven IP experience. The result is a broadly available portfolio of core, edge, cable and mobile IP routing and broadband access platforms," said Scott Kriens, Juniper's president.

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