The telecom equipment vendor admits it's in it for the money, but it has also got its eye on CoSine's customers
January 10, 2005
So, after months of speculation, it really is the end of the road for CoSine Communications Inc. (Nasdaq: COSN), which was acquired by Tut Systems Inc. (Nasdaq: TUTS) for $24.1 million on Friday night (see CoSine Sold for $24M and Will CoSine Get Carved Up?).
Tut manufactures a range of telecom equipment, including video trunking, digital TV, and broadband subscriber management devices. But, on a conference call this morning, Tut Systems execs said that the merger was not about getting hold of CoSine’s technology.
”That was not the primary reason for doing the deal,” according to one exec. Instead, the merger is all about "additional financial resources” netting Tut Systems around $22.75 million of CoSine's cash.
Read the complete story at Next-Gen Data Center Forum.
— James Rogers, Site Editor, Next-Gen Data Center Forum
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