Nortel to Acquire Xros for $3.25 Billion

BRAMPTON, Ontario, Canada, Mar. 16 -- Nortel Networks has agreed to acquire photonic switch developer Xros, of Sunnyvale, Calif., for $3.25 billion worth of Nortel common shares, fully diluted. According to Nortel, Xros' micro-mirror technology will allow data to be switched through large-scale optical networks in a completely optical form. Nortel expects the combination of this technology with its Qtera ULTRA product to further the company's goal of delivering the world's first all-optical network. The transaction is anticipated to close in the second quarter of 2000.
Nortel Networks and Xros share a commitment to implement the vision of the all-optical network, delivering world-class cost of ownership and value for our customers' business needs, said Clarence Chandran, president of Nortel's Service Provider and Carrier Group. An all-optical Internet will deliver millions of instant Internet sessions, thousands of video channels, and vast amounts of e-business transactions on an unprecedented scale.