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.