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Subject: Why You are a Traitor to Tamils If You Don't Understand TSCII
Date: Wed, 21 Nov 2001 10:03:43 +1100
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From: "Bala Pillai"
X-Yahoo-Profile: gandhi mind
X-Yahoo-Message-Num: 13248
Anbulla Thamilargale,
Why You are a Traitor to Tamils If You Don't Understand TSCII
_____________________________________________________
Would any of below billions of dollars of activity, jobs and poverty
alleviation been possible if not for ASCII?
Understand Tamil ASCII, TSCII http://www.tamil.net/tscii .
Are You Not a traitor to Tamils if you don't make an effort to understand
the need for TSCII?
Join Thamil Innaiyam in alleviating poverty/creating meaningful jobs for
Tamils. See http://groups.yahoo.com/group/erumbugal for joining details.
anbudan../bala
bala@...
Founder/Producer, Thamil Innaiyam (since 1995)
----- Original Message -----
From:
To:
Sent: Wednesday, November 21, 2001 8:13 AM
Subject: Internet M&A Update 11-20-01, Juniper, SFA, Accelerate in broadband
deals
> The Internet M&A Update
> Volume III, Issue 82, Nov. 20, 2001
>
> ACQUIRERS: WE'LL SHAKE THE BUSHES FOR YOU
> If you're a serious and qualified acquirer of tech companies, Webmergers
can put out confidential feelers on your behalf to more than 50 tech-focused
I-bankers and principals at thousands of individual companies. For more
information, mailto:buyside@...
>
> ___|TABLE OF CONTENTS|___________________________________
>
> * BROADBAND DEALS LAST WEEK
> - Juniper & Pacific Broadband: IP co pays $200M for cable modem systems
> (see below for deal analysis from the451)
> - Scientific-Atlanta & BarcoNet: Systems supplier gets broadband system
> - Accelerate & Occam: Broadband access co merges with equipment firm
>
> * OTHER SELECTED RECENT DEALS
> - Goldman Sachs & IPC: Global Crossing sells trading biz to big I-bank
> - Experio & Tactica: IT consulting firm buys regional competitor
> - Information Holdings & Liquent: Tech info firm buys biotech software
> - AdLink & DoubleClick Europe: European online ad co buys competitor
> - ActivCard & Ankari: Digital security firm buys user id systems tech
> - FTD.com & National Flora: Online florist picks bankrupt competitor
> - Burntsand & Primix: Systems integrator pays $7M for consultant
> - Trintech & VeriFone ePS: Payments provider buys online technology
> - Meridian & GigaPlan: Project mgmt ASP gets web-based planner
> - New Age & N2Net: Northeast Ohio ISP buys a local competitor
> - Hi-Tech Pharmacal & SweetThoughts.com: Diabetes drug co buys URL
> - J2 Interactive & JuniorNet: Employees buy online service for kids
> - Need2Buy & Efinity: B2B exchange mergers with web supply manager
>
> * ANALYSIS: JUNIPER'S DEAL HERALDS CABLE COMPETITION
> - When deal-shy Juniper makes a move, something’s up
> - Deal boosts Juniper's sales of edge routers to cable providers
> - Acquisition opens another front in competition with Cisco
> Used by permission of the451, the daily source of behind-the-scenes
technology industry insights. For a free trial of the451 visit:
> http://m1e.net/c?360345-Lb6Wek4hAXXp6%403869-8kixTHBiNsXYE
>
> ====== FREE NET SECURITY REPORT FROM AGILE EQUITY =======
>
> *** Agile Equity, a technology M&A advisory firm, has prepared a free
50-page report, "Network and Internet Security," which provides an overview
of the robust technology security marketplace along with profiles of
sixty-five security companies. To download your copy immediately, visit
> http://www.agileequity.com/research
>
> ABOUT AGILE EQUITY - TECHNOLOGY-FOCUSED M&A ADVISORS
> Agile advises public and private companies on mergers, acquisitions,
divestitures, buyouts and restructurings. As a sector specialist, Agile
leverages its first-hand technology industry experience, proprietary
research and extensive network of senior-level industry contacts. Agile's
strategic and financial counsel is candid, direct, and free of potential
conflicts of underwriting, research, and trading issues. Agile delivers a
focused, intense and highly personal engagement - one that is marked by an
unusual persistence and creativity.
>
> For more information, contact Dave Cummings mailto:davec@...
> Phone: 212-475-1100 Fax: 212-475-1101 www.agileequity.com
> =========================================================
>
> ___| BROADBAND DEALS LAST WEEK |_________________________
>
> By Ann Logue
>
> * Juniper Networks, Inc. (NASDAQ: JNPR), an Internet Protocol
infrastructure provider, signed a definitive agreement to acquire Pacific
Broadband Communications, which develops cable modem termination systems.
The deal is a stock transaction worth approximately $200 million. Pacific
Broadband Communications develops high performance broadband systems for
getting data, voice telephony, and video to customers. These systems help
cable operators deliver advanced IP services. In North America, Its products
are distributed by Scientific-Atlanta. Juniper Networks provides IP
infrastructure systems and services, particularly for the cable industry.
The merger increases Juniper's capabilities as well as its market share with
cable operators, who are increasingly offering high-speed Internet access to
their subscribers. Pacific Broadband had raised more than $60 million from
Bowman Capital, Cox Communications, Juniper Networks, Scientific-Atlanta,
Vulcan Ventures, Pilot House Ventures, Raza Foundries, and YAS Broadband
Ventures. Juniper Networks' shares currently trade at $25.60, down from a
52-week high of $168.50. The shares moved up $0.55 to $23.99 on the
announcement.
> http://www.pacificbroadband.com/
> http://www.juniper.net/
> (See below for analysis of the Juniper deal from the451).
>
> * Scientific-Atlanta, Inc. (NYSE: SFA), a supplier of digital broadband
systems and equipment, signed an agreement to purchase BarcoNet NV (Euronext
Brussels: BARN), a provider of distribution systems for broadband and
broadcast applications in Europe and Asia. Scientific-Atlanta will pay Euro
5.70 per share in cash, for a total value of Euro 173 million ($154 million
U.S.) BarcoNet (Euronext Brussels BARN) provides multimedia distribution
solutions for broadband and broadcast applications. Its systems are
particularly in demand by cable operators offering Internet access services.
Its products and services include headends for integrated multimedia
services, high-speed fiber optic backbones, network management, and digital
TV distribution. The company generated Euro 110 million ($98 million U.S.)
in revenue for the year ended June 30, 2001. Scientific-Atlanta, Inc.
supplies digital content distribution systems, transmission networks for
home broadband access, digital interactive set tops, and subscriber systems
designed for video, high speed Internet, and voice over IP networks. The
acquisition expands Scientific-Atlanta's presence in Europe and Asia.
Deutsche Banc Alex. Brown advised Scientific-Atlanta in the transaction,
while Dresdner Kleinwort Wasserstein and Petercam represented BarcoNet.
Scientific-Atlanta shares currently trade at $25.05, down from a recent high
of $65.80. The shares traded up $0.32 to $22.43 on the announcement.
> http://www.barconet.com/
> http://www.scientificatlanta.com/
>
> ===== PREP FOR 2002 WITH WEBMERGERS M&A REPORTS =========
>
> Smart companies like IBM, Siebel, PeopleSoft and J.D. Edwards are quietly
snapping up technology properties to boost their Internet capabilities. We
expect this kind of M&A activity to accelerate in 2002 as visibility returns
to the IT sector.
>
> Now’s the time to prepare for a new year by getting a subscription to the
Internet M&A Report. Get a two-year subscription now and save 35% off the
single-copy price.
>
> Order now at:
> http://m1e.net/c?360345-kZDCKH6G3N3AA%403870-2maT8X2zqgCac
> See more information at:
> http://m1e.net/c?360345-pojaj17o88DuA%403871-b6biGV8/v.y1k
> =========================================================
>
> * Accelerated Networks, Inc. (NASDAQ: ACCL), a developer of broadband
access solutions for communications service providers, acquired Occam
Networks Inc., a supplier of broadband loop carrier access equipment to
telecommunications service providers. In many ways, this deal looks like a
reverse merger, as Occam's shareholders will hold 68 percent of the shares
of the combined company on a fully diluted basis. This implies a valuation
for Occam of $33.4 million based on the market cap of Accelerated Networks
immediately before the deal was announced. On a combined basis, the
companies have $44 million in cash. In addition, some of the companies'
investors have committed to providing an additional $10 million in cash when
the deal closes and another $10 million in the future. Kumar Shah, the
president and chief executive officer of Occam Networks, will become the
president and chief executive officer the merged company, which will change
its name to Occam Networks. Occam Networks develops and markets broadband
loop carriers, which are access platforms that incumbent local exchange
carriers can use to deliver traditional and packet voice, broadband, and IP
services. Accelerated Networks designs and develops broadband access
products that let telecommunications providers bundle voice and data over a
single network. The merger will allow the combined company to compete more
effectively against larger, entrenched competitors than either could alone.
Occam Networks has received more than $51 million in financing from such
private investors as U.S. Venture Partners, New Enterprise Associates,
Windward Ventures, Norwest Venture Partners, Crescent Ventures, Hook
Partners, and The Anschutz Group. Accelerated Networks' shares are trading
at $0.58, down from a 52-week high of $9.6250. The shares moved down a penny
to $0.30 on the deal news.
> http://www.occamnetworks.com/
> http://www.acceleratednetworks.com/
>
> =========== M&A COMPS FOR $400? =========================
> Comparables are perhaps the most valuable tool for establishing M&A
valuations. You can now purchase a CUSTOM comps report from Webmergers for
the unheard-of introductory price of $399. Order at:
> http://m1e.net/c?360345-hoa8d..JAG1Ls%403872-FLEXLTmgKT.jg
> =========================================================
>
> ___| OTHER SELECTED DEALS LAST WEEK |____________________
>
> By Ann Logue
>
> * The Goldman Sachs Group, Inc. (NYSE: GS), the investment bank, along
with its Goldman Sachs Capital Partners 2000 investment affiliate, acquired
the IPC Trading System, a desktop securities system, from Global Crossing
Ltd. (NYSE: GX). The deal was a cash transaction worth $360 million. IPC
Trading Systems provides sophisticated desktop trading systems to the
financial institutions around the world. The group was acquired by Global
Crossing in June 2000 when it acquired Ixnet. AS part of the acquisition
deal, Global Crossing and Asia Global Crossing will be the preferred
provider for IPC's telecommunications needs for the next six years. Goldman
Sachs is a major international investment banking and securities firm. The
Capital Partners 2000 affiliate is its current vehicle for making privately
negotiated equity investments. The acquisition will be a new line of service
for them; it plans to operate IPC as an independent company. Global
Crossing, which provides telecommunications solutions over an IP-based
network, sold the business a part of an ongoing restructuring meant to stave
off bankruptcy. JP Morgan Chase and UBS Warburg LLC advised global Crossing
and Asia Global Crossing on the transaction. Global Crossing's shares
currently trade at $1.24, down from a 12-month high of $25.8750. Goldman
Sachs' shares, which have been as high as $120.00, are now trading at
$87.75.
> http://www.globalcrossing.com/
> http://www.gs.com/
>
> * Experio Solutions, the IT consulting subsidiary of Hitachi, will acquire
Tactica Technology Group, a management and technology consulting company.
The value of the deal was not disclosed. Tactica is a business and
technology consulting firm. Its partners were formerly associated with major
management consulting and accounting firms. Its strongest sectors are
utilities, logistics, and communications. Tactica has 165 employees and
generates $40 million in annualized revenues. Experio Solutions is the
information technology and consulting division of Hitachi, Ltd. It was
established last year when Hitachi purchased the ebusiness consulting group
of Grant Thornton. Its services include IT strategy, customer relationship
management, supply chain management, enterprise resource planning, and
ebusiness solutions.
> http://www.tactica.com/
> http://www.experio.com/
> http://global.hitachi.com/
>
> ===== GET FIRST LOOK AT TECH PROPERTIES FOR SALE ========
> Our free Buyer Alert gives qualified buyers a heads-up on selected
listings: http://m1e.net/c?360345-IwnFeDf7Fei.A%403873-6V7E1ffHvVfvs
> =========================================================
>
> * Information Holdings Inc. (NYSE: IHI), which offers information services
to high tech companies, signed an agreement to acquire Liquent, Inc.
(NASDAQ: LQNT), which provides software and services to the life sciences
industry. The deal is structured as a $2.27 per share cash tender offer,
with a total value of $40 million. Liquent, which was formerly known as
ESPS, offers application software and services used by pharmaceutical,
biotechnology, and contract research companies to create new drug
applications, reports, proposals, and technical documentation. Information
Holdings provides information products and services to the scientific,
technical, medical, intellectual property, and IT learning markets. Its
offerings include databases, information products, and other services for
intellectual property and regulatory professionals; most of this information
is available to subscribers over the Internet. Liquent will join IHI's
Intellectual Property Group and its services will be packaged into IHI's
regulatory services and intellectual property databases. Wachovia Securities
is the financial advisor to IHI in the transaction. IHI's shares currently
trade at $21.50, down from a high reached earlier in the year of $34.25. The
shares traded up $0.20 to $21.40 on the news. Liquent's shares also traded
up, by $1.29 to $2.24. They are now priced at $2.22, down from a high of
$3.00.
> http://www.liquent.com/
> http://www.informationholdings.com/
>
> * AdLink Internet Media AG, an online advertising firm operating in
Europe, entered into an agreement to acquire the European media business of
DoubleClick Inc. (NASDAQ: DCLK), a U.S.-based online advertising firm. In
exchange, AdLink is paying Euro 30.5 million ($26.8 million U.S.) in cash.
In addition, DoubleClick will receive options to acquire up to 36% of
AdLink's shares from United Internet AG, AdLink's largest shareholder.
AdLink provides online marketing services in Europe to support targeted
advertising campaigns. DoubleClick is an online advertising company,
specializing in banner ads and other promotional techniques, based primarily
in the United States. However, it does have some presence in Europe - enough
that the acquisition makes sense for AdLink. The acquisition agreement
includes a 10-year DART ad serving agreement and a global cooperation
agreement in which each company will cross sell the other company's
inventory on each other's ad networks and to their e-mail lists. This makes
it easier for either company's clients to operate a global online ad
campaign. DoubleClick's shares trade at $9.77, down from a high of $18.3125.
The shares traded up $0.34 to $9.55 on the announcement.
> http://www.doubleclick.com/
> http://www.adlink.com/
>
> ===== WHO'S PAYING WHAT FOR DISTRESSED DOT COMS? ========
> Get our 75-page report on Internet Asset Sales.
> http://m1e.net/c?360345-hhqALuOIGbE6.%403874-Lq8NHgbLyjwxk
> =========================================================
>
> * ActivCard (NASDAQ: ACTI), a leading provider of smart card and digital
identity technology, acquired American Biometric Company, which makes user
identification systems and which despite its legal name is based in Ottawa
and does business as Ankari. The deal was a cash transaction valued at $18
million U.S. Ankari makes a software framework that lets organizations
verify users and give them system access based on any combination of
passwords, digital certificates, security tokens, smart cards, and
biometrics. The company, founded in 1994 as American Biometric Company, is
best known for its Trinity software and its BioMouse, a computer mouse that
identifies fingerprints. Ankari's customers include JP Morgan Chase, TD
Securities, the Federal Reserve Bank, and several U.S. and Canadian
government departments. ActivCard makes digital identity and electronic
certification technology used to secure online transactions as well as to
control access to corporate networks. The acquisition will give the company
more integrated products to sell to customers, thus securing its market
position as well as its clients networks. ActivCard shares trade at $9.89,
down from a 52-week high of $22.8750. They traded up $0.13 to $9.85 on the
news.
> http://www.ankari.com/
> http://www.activcard.com/
>
> * FTD.com (NASDAQ: EFTD), an online florist, acquired National Flora Inc.,
a competing direct marketer of flowers and gifts, from bankrupt florist
Gerald Stevens Inc. In exchange, FTD.com paid $9 million in cash from its
existing balances. National Flora is a direct marketer of flowers, green and
blooming plants, balloon bouquets, fruit and gift baskets and gourmet
chocolates. It sells online and by phone. FTD.com operates similarly,
selling directly to consumers and using independent FTD florists to handle
the local preparation and delivery. FTD.com's shares are priced at $5.98,
down from a high reached earlier in the year of $8.59. They traded down a
nickel to $5.75 on the announcement.
> http://www.nationalflora.com/
> http://www.geraldstevens.com/
> http://www.FTD.com/
>
> * Burntsand Inc. (TSE: BRT), a systems integration firm, agreed to acquire
certain North American operations and assets of Primix Solutions Inc.
(NASDAQ: PMIX), a professional services firm specializing in Internet and
wireless services. The deal is a cash purchase valued at $7 million U.S. In
addition, Burntsand is assuming liabilities of $3 million U.S. Primix is a
professional services firm that specializes in the application of Internet,
wireless and broadband technology. Its clients include A.T. Cross, Bose
Corporation, Citibank, Computerworld, Ericsson, Genzyme, Joslin Diabetes
Center, Kemper Insurance, Lucent Technologies, Pergo, Rockwell Collins, and
Waters Corporation. Its estimated revenues for 2001 are $14 million U.S.
Primex also has offices in Sweden and Denmark, which will be handled
separately. Burntsand is a systems integration firm that handles strategic
Internet applications for its customers. It offers strategic, technical, and
creative consulting. The acquisition gives Burntsand professional staff, a
larger client list, and a greater presence in New England. Burntsand's
shares currently trade at $2.05 Canadian, down from a 12-month high of
$5.75. The shares traded down a penny to $1.84 Canadian on the news. Primex'
shares trade at $0.15 U.S., down from a high of $2.3438. They traded up two
cents to $0.25 U.S. after the deal was announced.
> http://www.primix.com/
> http://www.burntsand.com/
>
> * Trintech (NASDAQ: TTPA), which provides secure payment infrastructure
services, acquired VeriFone's ePS product line, which provides payment
switching and prepaid and Internet functionality to 35 customers. For $3.3
million, Trintech got the ePS product line and associated assets, including
the source code to all releases of all related products and technologies, as
well as all existing ePS customers. The VeriFone ePS product line is an
e-commerce payment management system used by large retailers, financial
institutions, and network operators for credit and debit card authorization,
gift cards, check authorization, draft capture and settlement, and voucher
activation. Trintech provides secure electronic payment infrastructure
systems for face to face transactions as well as those taking place over the
Internet and wireless devices. The acquisition expands Trintech's market
reach, particularly with very large organizations. VeriFone will continue to
focus on its basic secure electronic-payment services for financial
institutions, merchants, and consumers. VeriFone is owned by Gores
Technology Group, an international acquisition and management company.
Trintech shares are now trading at $1.90, down from a recent peak of
$12.6250. They traded up $0.05 to $1.85 when the news came across.
> http://www.verifone.com/
> http://www.trintech.com/
>
> * Meridian Project Systems, an application service provider for project
management software, acquired GigaPlan, Inc., a developer of web-based
project planning and collaboration software. Terms of the deal were not
disclosed. GigaPlan offers interactive planning products used for costing
and collaborating on large projects. Its system provides real-time updating,
resource management tools, and interactive Gantt charts in a browser-based
interface. Meridian Project Systems offers software on a packaged and
application service provider basis used for comprehensive project
management. Its main Internet product is ProjectTalk.com, which has 70,000
users. The acquisition expands its current project management applications,
particularly by the addition of an interactive scheduling component.
Meridian Project Systems is backed by Summit Partners.
> http://www.gigaplan.com/
> http://www.mps.com/
>
> ====== GET SAMPLE PAGES OF OUR 1st HALF M&A REPORT ========
>
> Download sample pages of our 225-report on the very active middle market
in Internet M&A - more than 600 deals in the first half! Go to:
> http://m1e.net/c?360345-cpOAKhSL1AMTk%403875-T/H5cU58XMZM%2e
> =========================================================
>
> * New Age Consulting Service, Inc., an ISP and network services firm based
in Northeast Ohio, acquired N2Net, Inc., another ISP in the same region.
Terms of the deal were not disclosed. N2Net offers dial-up and dedicated
Internet access in Cleveland and the surrounding suburbs, including parts of
Akron and Geauga County. New Age Consulting Service operates an ISP in
Northeast Ohio as well as WAN/LAN consulting, network security, web hosting,
web design, database development, e-commerce enabling, and server
co-location. The acquisition will give New Age a larger customer base, which
should help it generate scale economies in the ISP business.
> http://www.n2net.net/
> http://www.nacs.net/
>
> * Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK), a generic pharmaceutical
manufacturer, acquired SweetThoughts.com, an Internet site dedicated to
providing health education, support and products for people with diabetes.
Terms of the deal were not disclosed. SweetThoughts.com offers information
on diabetes, healthy nutrition, events and publications related to diabetes
as well as forums for patients. It also is an e-tailer of diabetic supplies.
The site has about 80 unique visitors a day. Hi-Tech is a specialty
pharmaceutical company that makes branded and generic prescription and OTC
products, including a line of products for the diabetes marketplace. The
acquisition, which includes the SweetThoughts brand name, will not only give
the company a new marketing outlet, but also give it a better name for its
DiabetiSweet artificial sweetener formulated for baking and cooking.
Hi-Tech's stock trades at $9.44 per share, down from a recent high of
$15.15. The shares traded up $0.16 to $8.80 when the acquisition was
announced.
> http://www.sweetthoughts.com/
> http://www.hitechpharm.com/
>
> * J2 Interactive, a media company for children founded by former employees
of JuniorNet Corporation, acquired JuniorNet, an online service for
children. Terms of the deal were not disclosed. JuniorNet is a
subscription-based, ad-free online service for children ages 3-12. The site
offers games, stories, puzzles, and art activities that allow children to
learn, have fun, send e-mail, and participate in safe online discussions. It
has content from such sources as Jim Henson's Bear in the Big Blue House,
Highlights for Children, Ranger Rick, Reading Rainbow, Sports Illustrated
For Kids, Weekly Reader, and Consumer Reports' Zillions. This J2 Interactive
should not be confused with the J2 that used to be Jfax, nor with the J2
that now owns the National Lampoon. JuniorNet's investors included RCN and
Euclid Partners. Euclid joined Second Act Holdings to help fund J2
Interactive.
> http://www.juniornet.com/
>
> * Need2Buy, a B2B exchange for the electronics industry, and Efinity Inc.,
which makes supply chain management services, announced that they had
merged. The two companies will now operate under a new name, RiverOne.
Financial terms of the deal were not disclosed. Efinity provides supply
chain management solutions, sold under the name Supply-Web information
Management (SWiM). This package provides a secure environment to manage
direct materials. Its features include multi-tier visibility, vendor-managed
inventory, real-time notifications, joint service agreements, and
performance metrics. Need2Buy is a business to business e-commerce exchange
that offers original equipment manufacturers, contract electronics
manufacturers, distributors, and component manufacturers a comprehensive,
neutral trading site to improve the process of procuring and selling
electronic components. The combined company will offer a complete suite of
software that addresses the need for interactivity among trading partners in
the electronics industry. In essence, it's easier to compete as a combined
entity rather than continue to go it alone. Need2Buy raised funds from Baker
Capital, TMCT Ventures, STAR Ventures, Shelter Ventures, Mitsubishi Corp.,
and JUMP Investors.
> http://www.need2buy.com/
> http://www.efinity.com/
> http://www.riverone.com/
>
> === REPORT: WHAT'S UP IN MIDDLE MARKET TECH M&A? ========
>
> QUESTION: Which of the 15-plus segments of the Internet infrastructure
category showed the most quarter-to-quarter growth in M&A in the first half?
>
> ANSWER: In the Internet M&A Report. See more information at:
> http://m1e.net/c?360345-WPHd8avLVRnk2%403871-gIHWbpuvC84dA
> =========================================================
>
> ___| ANALYSIS: JUNIPER’S CABLE DEAL |____________________
>
> Pacific Broadband deal to put Juniper in cable market
> By Steve Coplan, the451
> Nov 13, 2001
>
> In only the fourth acquisition of its five-year history, Juniper Networks
has paid $200m in stock for privately held chipmaker Pacific Broadband
Communications. The move will help the router maker expand into the cable
market and open another front with rival Cisco.
>
> Context
>
> Pacific Broadband has built a chip that boosts the carrying capacity of
copper cable in cable modem termination systems (CMTS), enabling cable
networks to provide video and data services over existing equipment. The
company was initially funded a year ago by Raza Foundries, the VC firm
started by former AMD president Atiq Raza, and raised a second round of
funding totaling $50m in April led by Bowman Capital, and with the
participation of cable provider Cox, Scientific-Atlanta and Juniper itself.
Management is drawn from Redback (CEO Alok Sharma), Alcatel Radio
Communications, Excite@Home and AT&T Bell Labs. In addition, Pacific
Broadband has attracted high-profile board members like Cox CTO Alex Best,
Intel new business group general manager John Miner and Liberty Media CTO
Tony Werner.
>
> For Juniper, the acquisition is a means to boost sales of its edge routers
to cable providers, a market in which it has until now had limited
penetration. Juniper's primary rival is Cisco - and to a lesser extent,
Riverstone - and while Juniper has snatched away market share from the still
dominant router maker, Juniper's M5 and M10 routers have struggled against
Cisco's edge routers. Since Cisco has managed to stem much of its loss in
market share over the past quarter, there may be some more urgency from
within Juniper to expand its addressable markets.
>
> Technology
>
> Pacific Broadband's chips are aimed at the CMTS market, the equivalent of
the cable network's last-mile bottleneck. Since the signal passes over
copper cable, it has been difficult to build equipment that can handle
broadband traffic. Pacific Broadband's Ultra DPM processor is about 24 times
as dense as the competing product from Broadcom, CEO Sharma told analysts on
a conference call. However, the real advantage to Pacific Broadband's chips
is the advanced physical layer technology based on RF expertise that
controls the quality of transmission across copper lines. The chips are
compliant with version 1.0 of Docsis (data over cable service interface
specification), and compliance with version 1.1 is in the works.
>
> It's not yet entirely clear how Juniper will integrate the newly acquired
technology, but one possibility is a blade based on the Pacific Broadband
chip in its edge routers. With the addition of the Pacific Broadband
technology, Juniper can make a more compelling case of supplying an IP
services platform to cable operators that combines Juniper's core and metro
routers with CMTS technology.
>
> Sales and marketing
>
> Pacific's chips are currently in the beta stage, and its most significant
deal to date has been with investor Scientific-Atlanta. SA has exclusive
North American marketing and distribution rights for Pacific Broadband's
Kodiak CMTS system. Juniper CEO Scott Kriens told analysts that Juniper will
continue to respect the agreement. Pacific Broadband is going into trials
this quarter, but there's no word yet on the trial partner's identity. Cox
seems like a strong candidate. And once the merger is closed, Juniper plans
to offer the companies' combined technology.
>
> Financial impact
>
> The acquisition is unlikely to affect Juniper's financial estimates for
the rest of the year, but will generate some extra costs over the next 12
months. By 2003, the deal should be accretive, Kriens said. Ironically,
Juniper's acquisition will generate a return on its own $5m investment in
Pacific Broadband in April. The acquisition is expected to close this
quarter.
>
> Conclusion
>
> Juniper can hardly be described as being active on the acquisition front,
preferring to develop technology in-house. The purchase of Pacific Broadband
makes sense for the router maker from the point of view of technology, where
it will reinforce its edge router portfolio; and in terms of expanding its
existing markets, where it can play with a reputable OEM partner like
Scientific-Atlanta. The deal is unlikely to result in any near-term
benefits, but does indicate that Juniper has its eyes peeled in the midst of
the telecom downturn for good bargains.
>
> Used by permission of the451 -- Copyright, 2001, the451
>
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