Wednesday, December 20, 2006

Redback Acquired By Ericsson For $2.1B

San Jose-based Redback Networks said Tuesday afternoon that the company is in a definitive agreement to be acquired by Ericsson, in a deal worth $2.1B. Ericsson will pay $25 per share of Redback for the firm. The acquisiiton is expected to close in early 2007. According to the firms, Redback will operate as a wholly owned subsidiary of Ericsson, and retain its management team. Redback is a provider of IP network routing equipment. Ericsson was advised by Citigroup and SEB Enskilda in the deal, and UBS was the advisor to Redback.