Turin Networks, Force10 Networks to merge

JANUARY 5, 2009 -- Upon completion of the merger, the two organizations will operate under the name of Force10 Networks Inc., focusing on both the enterprise data center and service provider markets.

JANUARY 5, 2009 -- Turin Networks Inc. (search for Turin Networks), provider of wireless backhaul, carrier Ethernet, and converged access equipment for wireline and wireless network operators, today announced a definitive agreement to merge with Force10 Networks Inc. (search for Force10 Networks). The combined companies will have more than 1,300 customers worldwide, including a number of top-tier service providers and premier enterprise data centers, says Turin.

Upon completion of the merger, the two organizations will operate under the name of Force10 Networks Inc., focusing on both the enterprise data center and service provider markets. Henry Wasik, president and CEO of Turin Networks, will become the president and CEO of the combined entity. Current Force10 Networks president and CEO James Hanley will assume the role of president, field operations with responsibility for sales, marketing, services, and business development.

"The inherent synergies of Force10 Networks and Turin Networks create opportunities to leverage existing joint distribution, integration, and technology alliance partners that will strengthen the new company's presence in both the enterprise data center and service provider markets," contends Hanley. "This merger creates both operational efficiencies and market focus in two high-growth, high-performance networking segments. The new company will also be positioned over time to deliver innovative new product solutions through the integration of Turin Networks' wireless backhaul, metro service edge, and converged access products and Force10 Networks' access switches."

"Delivering both innovative data center solutions for virtualization and 10 Gigabit Ethernet, as well as a broad range of solutions that enable diverse service providers to migrate to carrier Ethernet-based converged networks are the basis for our continued growth," adds Wasik. "Strategically, the merged company will be the only private networking company that is a leading player in three of the fastest growing segments of the networking market."

"High capacity system architecture and reliable modular software are essential for the next-generation data center, and we see similar requirements to facilitate the transition from legacy networks to a more cost effective, packet-optimized infrastructure for wireless backhaul and metro Ethernet service delivery," Wasik continues. "This transition creates new and exciting opportunities for the combined company to develop products that leverage both of our core competencies and to deliver long-term technology leadership and customer value."

Turin Networks says it has deployed wireless backhaul aggregation products in more than 60 thousand North American cell sites, while Force10 Networks has the industry's second highest revenue share for total 10 Gigabit Ethernet, as ranked by the Dell'Oro Group.

Industry analyst firm IDC projects two million 10-GbE ports will be deployed in data centers worldwide next year, while data center Ethernet switching revenue will grow at a CAGR of 8% to reach $6.4 billion in 2012. Industry analyst firm Ovum RHK expects the market for pseudowire and Ethernet backhaul transport equipment to grow by more than a factor of 10 between 2008 and 2012, reaching more than $5 billion in 2012.

The merger is expected to be finalized by March 2009, pending the completion of legal and regulatory filings. The combined company will be headquartered in San Jose, with sales offices worldwide and research centers in Chennai, India and Shanghai, China.

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