Next-gen carrier data centers
Because of Nortel's current credit protection status, the planned transaction process will follow the auction guidelines set out in Section 363 of the U.S. Bankruptcy Code.
Radware, as the initial buyer, is referred to as the "Stalking Horse" in this process, under which other bidders can submit a higher offer. You can read more about this, and how it relates to the Nortel/Radware deal at this Nortel Buzzboard.
Radware's chief operating officer, Ilan Kinreich, tells Light Reading that neither the proposed acquisition price, nor the number of Nortel employees that would transfer to Radware as part of the deal, may be disclosed, because of the bankruptcy court auction process.
He did say, though, that the plan was to take on "a good number of staff who would augment our R&D [and] who have been intimately involved in the Alteon product line, along with support engineers and some sales people."
Kinreich says the deal is "primarily about acquiring the customer base and sales channels. Nortel has done a good job selling [its application delivery products] as part of a larger enterprise and carrier solution set." He adds that the deal would particularly strengthen Radware's position with telecom operators and complement the company's existing business in the Asia/Pacific and EMEA (Europe, Middle East, and Africa) regions in particular.
Although he couldn't go into any details about how many customer relationships Radware might gain should the deal close as planned during the second quarter of this year, Kinreich notes that "tens of thousands of Alteon units have been sold over the years, and many of them are still in use in enterprises and data centers. We can offer [Nortel's customers] a strong roadmap for their existing platforms" and future upgrades to high-bandwidth and high-capacity systems. The COO adds that, in the future, Radware would look to integrate its own product lines with the Nortel assets to create a "best-of-breed product offering."
If his company doesn't lose out to a rival bidder, Kinreich says, the combined market share of the Nortel and Radware application delivery businesses would put it on a par with that of the market's No. 3 player, Citrix Systems Inc., and better position Radware to compete with the market leaders, F5 Networks Inc. and Cisco Systems Inc..
See where Radware currently sits in the application delivery controller (ADC) market, according to Gartner Inc., by checking out this market overview.
â€” Ray Le Maistre, International News Editor, Light Reading