Tuesday, December 19, 2006

Ericsson Buys Redback for $2.1 billion

Redback Networks (RBAK - news - Cramer's Take - Rating) has agreed to be bought by telecommunications equipment supplier Ericsson (ERIC - news - Cramer's Take - Rating) for $2.1 billion, or $25 a Redback share, the companies said late Tuesday.
The acquisition, when complete, will boost Ericsson's plan to help telecommunications carriers lower costs and upgrade their networks, as well as "build leadership in the fast-growing broadband and IP services market," said Carl-Henric Svanberg, Ericsson's CEO.
Shares of the San Jose, Calif., networking-equipment maker soared more than 17%, or $3.63, to $24.80 after hours on the news. Ericsson rose 4 cents to $40.66.

No comments: