Ericsson Finalizes Acquisition

STOCKHOLM -- Ericsson (NASDAQ:ERIC) today announced the completion of the merger of its indirect wholly-owned subsidiary, Maxwell Acquisition Corporation, with and into Redback Networks Inc. (NASDAQ:RBAK), with Redback surviving the merger as a wholly-owned subsidiary of Ericsson.

The merger follows the successful completion of the tender offer by Ericsson for all of the shares of Redback for the price of 25.00 USD per share. At the time the merger became effective, Ericsson owned in excess of 90% of Redback's issued and outstanding shares.

As a result of the merger, any Redback shares not tendered in the tender offer have been converted into the right to receive 25.00 USD per share. In addition, warrants to purchase Redback shares have been converted into the right to receive a cash payment equal to their net exercise value, based upon the 25.00 USD per share merger consideration. American Stock Transfer & Trust Company, which is acting as paying agent for the merger, will mail materials to non-tendering shareholders and holders of warrants to be used to surrender certificates for the merger consideration. Notwithstanding the completion of the merger, Ericsson will pay for shares tendered via guaranteed delivery procedures promptly after delivery of those shares.

Ericsson AB (Nasdaq: ERIC)