Lucent Technologies to acquire Yurie Systems for $1 billion
Article Abstract:
Lucent Technologies announced an agreement to acquire Yurie Systems for $35 a share, or $1 billion, in cash. Terms of the lucrative deal also extend an option for Yurie's approximately 250 employees to transfer ownership of Yurie stock or options into Lucent securities, according to a Yurie spokesman. Yurie, a publicly-owned manufacturer of devices that facilitate transmission of data and video over the Internet, earned $6 million on revenues of $51 million in 1997. Lucent paid a high but reasonable price while boosting its data networking strategy, securities analysts said. The three-pronged Lucent plan since 1997 calls for developing products internally, establishing partnerships with outsiders and acquiring other companies. Yurie Chmn and CEO Jeong Kim will take a position as president of carrier networks within Lucent's data networking systems group.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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A thriving Lucent Technologies is seen as a force of the not-too-distant future in networking
Article Abstract:
Lucent Technologies is becoming increasingly more important as a data networking company. The telecommunications equipment maker is a leader in its market, and the demand for data networking equipment is increasing even faster than Lucent is growing. The industry is watching to see if Lucent will attempt an acquisition in order to increase its standing in the data networking industry. Company chairman and CEO, Harry B. Schacht hinted at plans of an acquisition by gave no specifics in a recent interview. Lucent purchased Agile Networks, a little data networking company in the fall of 1996, and presently has an agreement with Bay Networks for the joint development of products. Because Lucent is a spinoff of AT&T, it may have problems merging with an entrepreneurial company, based on their differing corporate cultures.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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AT&T Capital in $2.2 billion buyout deal
Article Abstract:
AT&T Capital has agreed to a $2.2 billion leveraged buyout offer from a purchasing consortium comprised of GRS Holding Company and Babcock & Brown. The sale of the equipment leasing unit is part of AT&T's extensive restructuring process that began in Sep 1995. Analysts were surprised at how long it took to sell the division. AT&T had planned to either sell the leasing subsidiary privately or to hold a public offering for the 86% of the AT&T Capital shares it owned. While the sale price was not excellent, AT&T received more money that it would have through a stock sale. AT&T expects to realize $1.8 billion from the sale, which it plans to use to pay some of its $8.5 billion long-term debt and for general corporate needs. Details of the financing arrangements for the deal have not been disclosed.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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