Stanford Telecom Acquired by Newbridge Networks

Newbridge Networks (Sunnyvale, CA) completed the acquisition of Newbridge Networks, a leading supplier of key broadband wireless technology and products. Shareholders of Stanford Telecom granted final approval to the merger on December 13, 1999, resulting in the acquisition closing on December 14, 1999.

Under the agreement, Newbridge will pay Stanford Telecom stockholders U.S. $34.22 for each common share of Stanford Telecom. Newbridge will use its existing cash balance to finalize the transaction. After proceeds from the divestiture of unrelated businesses, the acquisition is expected to have a net cost to Newbridge of approximately U.S. $240 million. The transaction will be accounted for under the purchase method of accounting.

"With Stanford Telecom's industry leading high speed TDMA technology folded into the Newbridge portfolio, we will deliver more valuable solutions to reinforce our lead in the broadband wireless market," said Pearse Flynn, president and chief operating officer Newbridge Networks. "The powerful combination of Stanford Telecom and Newbridge further strengthens our leadership position in the exploding global market for broadband wireless."

Newbridge will retain the Wireless Broadband Products (WBP) and Satellite Personal Communications (SPC) groups of Stanford Telecom. The Newbridge wireless development team in Sunnyvale forms a key element of the Newbridge center of excellence for broadband wireless technologies, including the development of multiple access wireless modems and highly integrated subscriber units.