Alcatel has entered into a definitive agreement to acquire TiMetra, a privately held Silicon Valley based company that specialises in IP/MPLS service routing.
Under the terms of the agreement, Alcatel agreed to pay approximately $150 million in Alcatel American Depositary Shares and Alcatel shares for the total capital of TiMetra.
TiMetra shares and options will be exchanged for a number of Alcatel ADSs and shares to be determined at closing, according to an exchange ratio and within the limits specified in the agreement.
Completion of the transaction is subject to approval by TiMetra’s shareholders, other customary closing conditions and receipt of the approval of the Commissioner of the California Department of Corporations.
The transaction is expected to close within the third quarter of 2003.
Once the acquisition is completed, TiMetra will be integrated into Alcatel USA.