France-based optical networker Alcatel (Quote)said it has entered into a definitive agreement to acquire privately-held Astral Point Communications Inc., a Chelmsford, Mass.-based developer of next-generation SONET metro optical systems, in an all-stock deal.
Alcatel's integration of Astral Point will allow it to increase its addressable SONET metro markets with new products and to leverage Astral Point's technology in developing new capabilities across its existing optical offering, officials said. The combination of Alcatel and Astral Point solutions will create the most advanced and cost-effective product portfolio for current and future metro networks in North America, officials also said.
Terms of the pact call for Alcatel Class A ADSs (American Depositary Shares), representing 9.0 million Alcatel Class A shares, to be exchanged for Astral Point's capital stock. Based on the closing price in Paris on Monday, the transaction has an implied value of Euro 153 million ($134 million).
Among other criteria, Alcatel said it based its price assessment upon the quality of Astral Point's product portfolio, management team and business, as well as recent comparable transactions. Completion of this transaction is subject to approval by Astral Point's shareholders and other customary closing conditions. The transaction is expected to close by the end of the first quarter.
Once the acquisition is completed, Astral Point will join the optics activities of Alcatel USA, officials also said.
Christian Reinaudo, president of Alcatel's optics activities, said in a statement, "By combining Astral Point's highly dense, flexible SONET metro technologies and Alcatel's leading-edge cross-connects and DWDM metro solutions, we will offer our North American customers the most powerful and cost-effective migration path towards next-generation metropolitan services."
Astral Point's next-generation SONET platform is the ON 7000 integrated optical transport node which combines DWDM, SONET, digital cross-connect and Gigabit Ethernet capabilities in a single chassis. The ON 7000 provides the scalability necessary for carriers to effectively transport high bandwidth services, such as Gigabit Ethernet over multiple 2.5 and 10Gbps SONET rings. Astral Point's ON 5000 provides multi-service edge aggregation for voice and data services.
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