Alcatel has entered into a definitive agreement to acquire privately-held Astral Point Communications, a developer of Sonet metro optical systems.
Under the terms of the agreement, Alcatel Class A ADSs (American Depositary Shares), representing 9.0 million Alcatel Class A shares, will be exchanged for the capital stock of Astral Point. Based on the closing price in Paris on January 21, 2002, the transaction has an implied value of Euro 153 million.
Completion of the transaction is subject to approval by Astral Point’s shareholders and other customary closing conditions. The transaction is expected to close by the end of the first quarter. Once the acquisition is completed, Astral Point will join the optics activities of Alcatel USA.
Astral Point Communications has developed a portfolio of carrier-class products – the ON 7000 Integrated Optical Transport Node and the ON 5000 Optical Services Node – that are designed to support the demands of next-generation optical networks.
While other vendors have chosen to address either pure DWDM transport systems or products which try to optimise SONET for data traffic, Astral Point has focused on a multi-service optical platform. The ON 7000 integrated optical transport node, for example, combines DWDM, SONET, digital cross-connect and Gigabit Ethernet capabilities in a single chassis. The ON 7000 allows carriers to effectively transport high bandwidth services, such as Gigabit Ethernet over multiple 2.5 and 10Gbit/s SONET rings.
Astral Point’s ON 5000, on the other hand, provides multi-service edge aggregation for voice and data services.