Tellabs Closes Acquisition of WiChorus
03 December 2009 - 12:30AM
PR Newswire (US)
Combination creates advanced solutions to revolutionize the mobile
Internet NAPERVILLE, Ill., Dec. 2 /PRNewswire-FirstCall/ -- Tellabs
completed its acquisition of WiChorus, a leading provider of mobile
packet core solutions, on Dec. 1, 2009. The closing follows
Tellabs' receipt of Hart-Scott-Rodino approval from the Federal
Trade Commission. The acquisition enables Tellabs, a leader in
mobile backhaul networks, to expand into mobile packet core
networks, deliver new applications and provide significant savings
for mobile carriers. The acquisition brings a new breakthrough
product to Tellabs that is purpose-built for 4G, LTE and WiMax. It
addresses the unique requirements of the mobile Internet as it: --
Includes a full range of mobile IP products (from low entry price
to highly scalable) for applications including GGSN, LTE and WiMax,
plus new application enablement with superior DPI capability. --
Offers 8 times more throughput, 4 times more simultaneous Internet
connections and active users, compared with competitive platforms
in gateway applications. -- Uniquely combines world-class
application analytics with a mobile core gateway for improved
traffic engineering and network optimization. -- Enables customers
to analyze and monetize more than 400 of the top mobile Internet
applications. -- Makes mobile networks content-aware and
context-aware, with personalized application-awareness. --
Outperforms other platforms in delivering mobile Internet capacity.
For example, competitors' capacity significantly degrades (as much
as 30% to 50%) during deep-packet inspection (DPI). -- Delivers new
and differentiated applications such as Internet offload and
distributed LTE gateway. It can offload as much as 70% of traffic
at the network edge, increasing core network efficiency and
improving user experiences. As a result, customers can save as much
as 50% in capital expenses, compared with the present method of
operation. "Tellabs' expanded mobile solutions can help customers
deliver distinctive personalized user experiences such as mobile
Internet, video and commerce," said Robert W. Pullen, chief
executive officer (CEO) and president of Tellabs. "By adding this
breakthrough technology, we can help customers simplify networks,
reduce expenses and deliver new applications to generate revenue."
Tellabs retained WiChorus' office in San Jose, Calif., and
employees around the world. Rehan Jalil, former CEO and founder of
WiChorus, has joined Tellabs as senior vice president - mobile
Internet, reporting to Pullen. The combined company employs about
3,300 people worldwide. About Tellabs -- Tellabs helps customers
succeed through innovation. That's why 43 of the top 50 global
telecom service providers choose our mobile, optical and business
solutions. We help telecom service providers, independent operating
companies, MSO/cable TV companies, enterprises and government
agencies get ahead by adding revenue, reducing expenses and
optimizing networks. With wireless and wireline networks in more
than 90 countries, we enrich people's lives by innovating the way
the world connects(TM). Tellabs (NASDAQ:TLAB) is part of the NASDAQ
Global Select Market, Ocean Tomo 300(TM) Patent Index, the S&P
500 and several corporate responsibility indexes including
FTSE4Good and eight KLD indexes. http://www.tellabs.com/
Forward-Looking Statements - Statements in this news release
regarding the proposed Tellabs acquisition of WiChorus, which are
not historical facts, including expectations of financial results
for the combined companies (e.g., projections regarding revenue,
earnings, cash flow and cost savings), are "forward-looking
statements." Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors that may cause either company's actual performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by those
statements. Either company's actual future results could differ
materially from those predicted in such forward-looking statements.
Investors and security holders are cautioned not to place undue
reliance on these forward-looking statements, and any such
forward-looking statements are qualified in their entirety by
reference to the following cautionary statements. Important factors
upon which the forward-looking statements presented in this release
are premised include: (a) receipt of regulatory and stockholder
approvals without unexpected delays or conditions; (b) timely
implementations and execution of merger integration plans; (c)
retention of customers and critical employees; (d) economic changes
impacting the communications industry; (e) successfully leveraging
Tellabs/WiChorus comprehensive product offering to the combined
customer base; (f) the financial condition of communications
service providers and equipment vendors, including any impact of
bankruptcies; (g) the impact of customer and vendor consolidation;
(h) successfully introducing new technologies and products ahead of
competitors; (i) successful management of any impact from slowing
economic conditions or customer demand; and (j) protection and
access to intellectual property, patents and technology. In
addition, the ability of Tellabs/WiChorus to achieve the expected
revenues and accretion will be affected by the effects of
competition (in particular the response to the proposed transaction
in the marketplace), the effects of general economic and other
factors beyond the control of Tellabs/WiChorus, and other risks and
uncertainties described from time to time in Tellabs public filings
with the Securities and Exchange Commission. Tellabs disclaims any
intention or obligation to update or revise any forward-looking
statements. Tellabs and Tellabs logo are trademarks of Tellabs or
its affiliates in the United States and/or other countries. Any
other company or product names mentioned herein may be trademarks
of their respective companies. DATASOURCE: Tellabs CONTACT: Media,
George Stenitzer , +1-630-798-3800, , or Investors, Tom Scottino,
+1-630-798-3602, , both of Tellabs Web Site:
http://www.tellabs.com/
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