Tekelec and Santera Combine their Next Gen Switching Businesses

Tekelec and Santera Systems agreed to combine their next-generation switching businesses. Tekelec is a developer of telecommunications signaling solutions, packet-telephony infrastructure, network monitoring technology, and value-added applications. Santera Systems offers an integrated voice and data switching platform for delivering Class 4/5 services, PRI offload, packet/cell switching and voice over broadband services. The SanterOne platform features both TDM and packet switching fabrics. The combined company's product portfolio will also include media gateways, media gateway controllers, signaling gateways and element management systems for migrating from circuit to packet networks. Under the deal, Tekelec will contribute $28 million in cash and its existing packet telephony business. Santera's current investors will contribute its assets and an additional $12 million in cash. Initially, the division will be 52% owned by Tekelec. Tekelec will also have the ability to increase its ownership percentage in the new subsidiary up to 62.5% and has the option to purchase the entire remaining interest from 01-July-2005 through 31-December-2007. The new business will be called Santera, a Tekelec company. David Heard, CEO of Santera Systems will serve as president of the new subsidiary. The transaction is expected to close before the end of Q2.
http://www.tekelec.com
http://www.santera.com