Nokia Siemens Networks has announced plans to buy Carrier Ethernet company Atrica, for an undisclosed sum.

The deal marks the first acquisition for the company since Nokia and Siemens merged their communications businesses in June 2006.

The 180 staff currently working for Atrica will be integrated into the larger company’s team.

Nokia Siemens Networks’ said the deal will allow it to offer end-to-end Carrier Ethernet Transport systems.

"The products of Atrica and Nokia Siemens Networks complement each other perfectly," said Bernd Schumacher, head of IP transport at Nokia Siemens Networks.

"They will help our customers cut the complexity and related costs of data-optimised networks."

Atrica, which has headquarters in Santa Clara, California and a development centre in Tel Aviv, serves more than 40 customers including Orange Business Services, KVH and Optimum LightPath.

Schumacher said Carrier Ethernet products were one of the fastest growing segments of the telecommunications market and leading analysts expected it to grow 15 per cent a year.

The acquisition is expected to take place before 1 January 2008, subject to regulatory approvals.