Ericsson acquires Torrent Networking Technologies

Ericsson acquires Torrent Networking Technologies - Strengthens IP Data Networking Capability with Carrier Edge Routers As part of its strategic move into next generation IP carrier networking, Ericsson announced today that it has reached a definitive agreement to acquire Torrent Networking Technologies Corporation, a Maryland-based supplier of high-capacity edge routers with dynamic traffic shaping capabilities (aggregation routers). Under terms of agreement, which is effective immediately, Ericsson will execute a cash purchase of Torrent for a total of USD 450 million. (SEK 3,600 million) Torrent employees will become part of the Ericsson Datacom organization and remain in the Maryland and Research Triangle Park, N.C., facilities. The acquisition gives Ericsson carrier-class routing equipment to aggregate and deliver Quality of Service (QoS) IP traffic. In addition, the aggregation router will serve as a Label Edge router to complete Ericsson's MPLS (Multi Protocol Label Switching) solution for IP over ATM. Ericsson can thereby offer new and existing customers end-to-end IP and ATM solutions. "The Torrent products are a strategic addition to Ericsson's carrier-class networking portfolio," said Sven-Christer Nilsson, president and CEO of Ericsson. "The acquisition moves Ericsson squarely into the IP playing field and will have a substantial impact on our ability to provide a complete data networking solution. This is in line with our strategy to offer fully integrated capabilities for converged wireless and wireline voice and data networks." "Torrent has Internet-hardened technology that amplifies our suite of data products to be one of the strongest and most flexible end-to-end IP and IP- over-ATM solutions on the market," said Mike Thurk, general manager, business unit Datacom Networks & IP Services. "Ericsson today delivers comprehensive, readily available solutions for both IP and ATM-based networks. The Torrent products, with their critical traffic-shaping capabilities, will play a pivotal role for both solutions." With headquarters in Silver Springs, MD, Torrent Network Technologies is a leading innovator of Internet-class routing solutions for operators and service provider networks. Torrent has placed products from the IP9000 Gigabit Router family with more than 25 world-class companies, including Concentric, Texas GigaPOP and Exodus in the U.S., and internationally with VAS-Net, France Telecom and Sonera. "With the purchase of our company, Ericsson has given a clear directive of their intent to be a player in the IP space," said Jean-Luc Abaziou, president and CEO of Torrent. "This is an excellent match and we are thrilled that Ericsson has committed resources and expertise to help accelerate our new product rollouts. In addition, their experience in executing large networks grants us first-hand knowledge of end-to-end converged solutions." Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Pia Gideon, Director External Relations Phone: +46 8 719 2864, +46 70 519 2864 E-mail: pia.gideon@lme.ericsson.se Lars Östlund, Ericsson Corporate Communications Phone: +46 8 681 2656, +46 70 326 2656 E-mail: lars.östlund@lme.ericsson.se Background about Ericsson's infrastructure Portfolio The Torrent product will play a pivotal role for both IP and ATM-based networks. For IP-based networks Ericsson's solution set consists of carrier- class remote access (Tigris) and core gigabit routers (AXI 520), plus a new aggregation router - the AXI 540 - which will be an extended version of Torrent's newly announced IP9520 aggregation router. For ATM networks, the new AXI 540 product will be a key part of Ericsson's MPLS-based IP-over-ATM solution. In this capacity it will serve as an MPLS Label Edge Router that will be integrated with Ericsson's ATM core (AXD301) and multi-service (AXD311) switches. Ericsson also will continue to address Torrent's existing accounts with the IP9010 . These IP and ATM solutions also create a powerful backbone infrastructure to support mobile data services with technologies such as WCDMA and other mobile datacom solutions such as GPRS, EDGE and CDMA2000. About Torrent Network Technologies Torrent was founded in August 1996 by Dr. Hemant Kanakia, who previously led switching architecture development for AT&T Bell Laboratories, and is privately held. Headquartered in Silver Spring, MD, Torrent is an active participant in the Internet2 project, the ADSL Forum, the ATM Forum, IETF, and the IP Multicast Initiative, and maintains its web site at www.torrentnet.com. Background About the IP9000 Router Products Torrent's IP9000 family of routers is optimized for traffic aggregation applications, combining industry-leading interface density and system resiliency with powerful service management capabilities. The routers deliver unprecedented performance and line densities and an unmatched IP protocol suite for QoS and traffic management. Torrent routers have been in field trials and live networks at global carriers and ISPs over the past year - with more than 50 platforms operating at 25 sites worldwide. They feature: * High-performance, patented silicon-based routing * Ipaction -- Torrent's comprehensive suite of "internet hardened" routing software * 20Gbps throughput with 24.8M pps - per shelf * Over 3,000 T1s/rack and 120 (growing to 360) T3s/rack * Unprecedented commercial and consumer subscriber access and provisioning ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/13/19990413BIT00270/bit0001.doc http://www.bit.se/bitonline/1999/04/13/19990413BIT00270/bit0002.pdf