As if Newbridge Networks was not having difficulty enough with its loss-making UB Network’s acquisition (CI No 3,299), the company has agreed with Public Communication Networks Group of Siemens AG to jointly acquire RADNet Ltd, an Israeli developer and manufacturer of access switches for asynchronous transfer mode networks, for $75m. Under the terms of the agreement, Siemens will control 50.1% of the company, while Newbridge Networks will own 49.9%. The deal will bring additional ATM access switches to the Siemens/Newbridge MainStreetXpress product line. RADNet will continue its operation in Israel, focusing on research, development and manufacturing of ATM access products, with Siemens and Newbridge serving as distribution channels. Avi Domoshevizki will continue as president and chief executive officer of the company, which will have its own board of directors, including representatives of the two parent companies. Established in 1994 as a division of the Tel Aviv based RAD Group, RADNet focuses on ATM access products for carriers and service providers and has approximately 65 employees.
