Siemens to buy Efficient Networks for $1.5 Billion

Siemens is to purchase Efficient Networks, a provider of broadband digital subscriber line (DSL) products, for $1.5 billion.

Efficient Networks, a provider of broadband digital subscriber line (DSL) solutions, and Siemens have entered into a merger agreement under which Siemens will make a cash tender offer for all of Efficient Networks’ outstanding shares.

Siemens will offer $23.50 per share, which values Efficient Networks at approximately $1.5 billion. The transaction will enable Siemens Information and Communications Networks Group (ICN) to strengthen its position in the DSL broadband access market.

Under terms of the transaction Mark Floyd, Efficient Networks’ founder and chairman, will become president of ICN’s Access Solutions division and will have worldwide responsibility for the business. Efficient Networks’ management team will continue to manage all of Efficient Networks’ activities within the Access Solutions division at Siemens ICN.

With the acquisition of Efficient Networks, Siemens is extending its broadband access portfolio to encompass customer premises equipment for businesses and consumers.

The merger is expected to close in April 2001.

Efficient Networks also announced today that it has been selected by SBC Communications as its provider of external Ethernet attached DSL modems. The agreement between Efficient Networks and SBC covers a one-year period with two discretionary one-year extensions. Efficient Networks has been supplying DSL modems to SBC since an initial agreement in October 1999.