Sycamore Networks announced a revised agreement to acquire Allen Organ’s majority-owned subsidiary, Eastern Research, Inc., an innovative provider of network access solutions for wireline, wireless, and private network operators.
Under the new deal, Sycamore will pay $80 million in cash to Allen Organ shareholders and the minority shareholders of Eastern Research.
The original deal contemplated a $92.5 million transaction, comprised of approximately $84.5 million in Sycamore stock and $8 million in cash, based on trailing average closing prices of Sycamore’s stock at the time. The boards of both companies approved the revised agreement. http://www.sycamorenet.comhttp://www.erinc.com
- Sycamore first announced plans to acquire Eastern Research in April 2006.
- Eastern Research’ product portfolio spans multiservice cross-connects and access gateways that aggregate, groom, and manage bandwidth in access portions of wireline and wireless infrastructure networks. Its customer base include Tier 1 fixed line and mobile network operators, utility companies, government agencies, and military networks. The company is based in Moorestown, New Jersey. For calendar year 2005, Eastern Research had revenue of approximately $62 million.