Paradyne Networks Inc. plans to acquire Net to Net Technologies Inc.’s complete product line and intellectual capital portfolio, substantially all of Net to Net’s assets, and certain liabilities of Net to Net. In addition, Paradyne will acquire substantially all of the assets and products of Net to Net’s foreign subsidiaries.
The deal is expected to close within two weeks. At closing Paradyne will pay Net to Net up to $3 million in cash and 604,839 shares of Paradyne stock, subject to certain purchase price adjustments. In addition, Paradyne will issue to Net to Net a warrant to purchase up to 1,008,065 shares of Paradyne stock at an exercise price of $5.95 per share, which will expire on Dec. 31, 2005.
Net to Net, a privately held developer and manufacturer of broadband access equipment, is located in Portsmouth, N.H. This acquisition supports Paradyne’s strategy to provide the most complete range of broadband access products to support service providers worldwide that are migrating voice and data to packet-based networks.
“Net to Net has proven to be an exceptional company with a solid product portfolio that Paradyne will continue to develop and support,” says Sean Belanger, president and CEO of Paradyne. “We look forward to working with Net to Net’s customers to seamlessly continue their deployment of Net to Net’s IP-based DSLAMS to deliver voice, video and data over existing wireline networks.”
Upon closing of the transaction, Paradyne plans to maintain a research and development center in Portsmouth. Paradyne will offer positions to many of Net to Net’s engineering, sales and support persons, and will integrate operations and manufacturing into its corporate headquarters and manufacturing plant in Largo, Fla.
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