It is also designed to put the Paris, France-based supplier in a stronger position to compete with Cisco Systems and Juniper Networks.
Optimistic observers took the view that the bid was a sign of confidence on Alcatel’s part that the spending decline was coming to an end. However, Alcatel was not sufficiently confident to part with any cash for the company and is paying for the acquisition in shares.
Mountain View, California-based TiMetra was founded in 2000 by former Nortel Networks executives with backing from venture capitalists Accel and Redpoint Ventures. It claims to be the first company to deliver a full internet router that supports a range of private data services such as Ethernet as well as internet access. It says that its routers enable, for the first time, the delivery of advanced data services in a IP/MultiProtocol Label Switching (MPLS) network architecture.
With its sights on a market that IP/MPLS service market that researcher IDC estimates to be worth $87bn, Alcatel said the addition of TiMetra’s products would enable it to offer customers products that enable a range of value-added services.
Source: Computerwire
