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Summary:

Radware, a maker of application delivery equipment, wants to buy a business unit of bankrupt gear maker Nortel Networks. The unit in question is known as Alteon; it makes application switching and WAN optimization products for the data center. Nortel bought Alteon for $7 billion back […]

masterawhiteRadware, a maker of application delivery equipment, wants to buy a business unit of bankrupt gear maker Nortel Networks. The unit in question is known as Alteon; it makes application switching and WAN optimization products for the data center. Nortel bought Alteon for $7 billion back in 2000. Light Reading reports the Radware bid may be closer to $50 million.

Wireless area network optimization and application delivery, which provide visibility into networks, are becoming more relevant in data centers as software as a service and cloud computing becomes more accepted. Venture firms are investing in the space, and it looks like Radware would like to as well. Because Nortel filed for bankruptcy protection earlier this year, any deal would have to go through the bankruptcy court approval process.

By Stacey Higginbotham

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  1. The entire sector of XML appliances, application routers, and such, has proven to be such a bust. More of these functions are being moved (or just are) to the general purpose server stack, or to VM slices, etc.

    The number of DOA application switch vendors (which were nothing but Linux boxes with a special stack and lostsa ports) is now legend.

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  2. $7 billion to $50 million…quite an exchange rate. Boy, now I know why the business world never appealed to me.

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  3. How much of the $7B was paid in inflated Nortel stock versus cash?

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  4. who cares how it was paid – stockholders still got the screwed from bad management!

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  5. Way cool. Radware is exhibiting some smarts here. Alteon also represents Nortel’s security products, a good match with Radware.

    -Stiennon

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  6. Radware’s own market cap is only 110 mil right now. At 55 mil this would be a big bite for their shareholders. And, I guess Nortel is looking for cash… But, I agree with Stiennon – if they grab it and handle it right this could be a big leg-up for Radware. I’ll watch radware valuation curve… up!

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  7. [...] telecommunications industry, the company may still end up as a subsidiary of a larger company or be sold off in bits. [...]

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  8. I personally had terrible experience with Radware enterprise level products. The company is based in Israel and most of their support engineers are having very hard time with speaking proper english. To me this approach sounds more like an online coverage attack and trying to get attention from techies.

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  9. [...] which filed for bankruptcy in January, may also sell its enterprise business, and it already has signed an agreement to sell its wireless area network optimization business. If Nortel finds willing buyers to help it raise the cash to pay off its $4.5 billion in debts, and [...]

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  10. [...] delivery optimization company, sealed the deal for Nortel’s application delivery assets. It paid $18 million for a business unit that cost Nortel $7 billion back in 2000. [...]

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