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Lucent to Acquire Telica for $295 million

Lucent Technologies agreed to acquire Telica for approximately $295 million in stock and options (92.7 million shares), plus additional employee-related cash payments, for its softswitch platform.

Janet Davidson, president of Lucent Technologies’ Integrated Network Solutions (INS) business, said the acquisition would strengthen the company’s “Accelerate” VoIP portfolio and enable it to address a much wider range of network build-outs. She said Telica’s 2500 port media gateway and signaling gateway complements Lucent’s own softswitch solutions.

Telica’s product portfolio includes the Plexus 9000 Media Gateway, PLUS Signaling Gateway, and PLUS Media Gateway Controller. Its Plexus Unified Service Architecture (PLUS) supports a mix of legacy TDM, packet, Class 4, Class 5, wireline and wireless services. The second generation platform, which was introduced in September 2003, provides greater scalability by means of new Compute Modules for its Media Gateway Controller. Each new module delivers processing power that is equivalent to an entire first-generation softswitch platform. A single PLUS second-generation softswitch now supports up to 7.5 million calls per hour, the equivalent of five to 10 legacy switches. The PLUS architecture also is designed to interoperate with other softswitches provided by other suppliers via either SIP-T or BICC protocols.

To date, Telica has deployed more than 3 million ports and is supporting about 4 billion minutes of use per month on its PLUS systems. The company claims more than 60 customers. Telica had revenues of about $19 million in 2003.

Following the acquisition, Lucent’s Accelerate VoIP portfolio will include the following elements.

http://www.lucent.comhttp://www.telica.com

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