LM Ericsson to acquire Redback Networks

LM Ericsson to acquire Redback Networks

Redback Networks has said that they are now being acquired by Swedish mobile phone equipment maker LM Ericsson. The deal is worth around $2.1 billion and it would be conducted in a cash transaction.

Redback Networks specializes in making router products which are used to direct data over broadband networks.

These routers are increasingly being used on networks to simultaneously handle the data, voice, and video downloads demanded by consumers.

Redback Chief Executive Officer Kevin DeNuccio spoke about this deal: “It’s a huge market for the routing technology necessary to build out these networks, and it’s really video driving the need for the infrastructure changes. I don’t view this as an ending; I view it as a perfect match of the key technologies that will be necessary in the future.”

The company has around 800 employees and Ericsson has said that they are not considering any job cuts in the near future after the acquisition.