Radnet switches on to joint acquisition

Siemens Nixdorf and Newbridge Networks have joined forces to buy an Israeli manufacturer of ATM access switches in a deal worth $75 million.

The German manufacturer's public networking division and Newbridge said they would buy Radnet, with the former owning 50.1 per cent and the latter 49.9 per cent.

Thomas Rambold, president of Siemens' broadband networking group, said the deal was made because of Siemens' strategic alliance with Newbridge, particularly on the MainStreet Xpress product line. The joint buyout will enable both companies to offer an end-to-end system for customers worldwide.

Terence Matthews, chairman of Newbridge, said: 'This strengthens the long-term ATM networking alliance between our companies. Radnet's access products greatly enhance our position as the core supplier to the largest network suppliers in the world.'

Avi Domoshevizki, president of Radnet, said: 'We are pleased to formalise our relationship with two leaders in the communications industry.

'The entire team at Radnet is looking forward to working closely with Siemens and Newbridge in the future.'

The 60 employees at Radnet's Israeli plant will remain, but they will become part of a bigger R&D team under the auspices of Siemens and Newbridge, which jointly have over 2,000 employees. Radnet will continue to operate as a separate company. The board will include directors from the two buyers.

Neil Rickard, a research director at the Gartner Group, said that while Siemens and Newbridge had co-operated on technology in the past, this was the first time they have fully bought a third party.

He said: 'They are starting to do more things together. Israeli companies have never been particularly strong at distribution, so this is potentially a very good marriage.'

Rickard added: 'Newbridge is getting to be a dominant player in ATM networks.

'The networking division of Newbridge is the shining star in the company's crown.'