Chromatis Sold For $4.5 Billion

Lucent buys metro optical networking startup

May 31, 2000

1 Min Read

Lucent Technologies (NYSE: LU) today said it will acquire Chromatis Networks, a leader in metro optical networking systems, which is the fastest-growing segment of the optical networking market. Chromatis recently announced a revolutionary technology that can reduce the cost of building metro optical networks by one-half while radically improving their performance.

Lucent will acquire Chromatis, a privately held company, in a stock transaction for approximately 78 million shares of Lucent common stock, valued at about $4.5 billion, based on the closing price of $58.19 for Lucent stock on May 30, 2000. This excludes the approximate 7 percent stake in Chromatis that Lucent already owns through its Lucent Venture Partners venture capital subsidiary. Certain key employees of Chromatis also could receive an additional 2.5 million shares, (valued at approximately $145 million based on the closing price of Lucent stock on May 30, 2000), contingent upon Chromatis meeting certain performance-based goals.

http://www.lucent.com/press/0500/000531.coa.html

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like