Forbes.com: Cisco's Airespace Buy May End Alcatel, Nortel Links

Forbes.com: Cisco's Airespace Buy May End Alcatel, Nortel Links: "Standard & Poor's Equity Research the purchase of Airespace by Cisco Systems (nasdaq: CSCO - news - people ) would likely end Airespace's product alliances with Cisco rivals Alcatel (nyse: ALA - news - people ) and Nortel Networks (nyse: NT - news - people ). Cisco will pay $450 million in stock to acquire Airespace, a provider of wireless local area networking (WLAN) systems. S&P Equity Research said, 'While the price, which we estimate is eight times 2004 sales, seems to us rich, we note that Airespace's revenue is ramping quickly.' The research firm said Airespace would fill Cisco's need for an internal WLAN switching solution. "

Nortel, Alcatel will likely go with other WLAN vendors (Aruba, Trapeze, Meru..) or build internally (unlikely).