Nokia Invests in Redback

HELSINKI, Finland & SAN JOSE, Calif. -- Nokia Networks, the infrastructure arm of Nokia Corporation (NYSE:NOK - News), and Redback Networks Inc. (Nasdaq:RBAK - News), today announced strategic agreement to increase broadband solution sales and access to strategic customers. In addition, Nokia and Redback agree to cooperate on technology development and product solutions. Furthermore, Nokia takes a 10 percent stake of unregistered common stock in Redback with an option to purchase an additional amount from Redback to increase its ownership of Redback's outstanding common stock to less than 20 percent. The investment also comes with a Nokia seat on the board of directors of Redback Networks. Nokia and Redback will expand their existing commercial relationship to include global distribution of wireline intelligent edge and broadband access products. Redback Networks and Nokia's Broadband Systems Divisions' sales forces and channels will closely cooperate to target leading carriers and service providers. "We are pleased to further strengthen our relationship with Redback, a recognized leader in subscriber management and IP technologies, and we believe the strength of our complementary technology cooperation and product solutions will bring significant advantages to our customers," said Ari Lehtoranta, Senior Vice President, Nokia Broadband Systems. "This cooperation and shared vision of the network evolution will deliver immediate benefits of an expanded product portfolio and integrated support services to customers of both Nokia and Redback." Nokia Corp. Redback Networks Inc.
randy2000 12/4/2012 | 10:21:14 PM
re: Nokia Invests in Redback Redback has the best edge router in the market and this helps them tremendously. Now that Unisphere would not exist on its own, it is a win-win for Redback.
wayland_smithy 12/4/2012 | 10:21:13 PM
re: Nokia Invests in Redback Interesting - I can see from some of the technology angles why this could be interesting to Nokia, but what's the real driver behind this ? Why invest (& possibly later acquire) rather than work with a strategic partner for the IP/core ? There doesn't seem to be a killer product here....maybe something in the pipeline that we are not aware of ?
bluemtn 12/4/2012 | 10:21:12 PM
re: Nokia Invests in Redback The killer product is the OS that rback wrote from the ground up for the SE 800 router. JunOS was an improvment over IOS, and this is an improvemnt over both, at least for edge routers. RBAK is the 3rd firm to write the code from the ground up...just the engineering talent to deliver the product is of hudge value.

the router itself is in somthing like 55 trials with some deployments only 7 months after being released. (3 deployments I think, and 5 prudution trials -- all included in that 55 number) That's not too bad of a roll out.

wayland_smithy 12/4/2012 | 10:21:08 PM
re: Nokia Invests in Redback So where does this leave the $450M investment in Amber (makes the Unisphere deal seem like a real bargain ....??)
Sign In