Alcatel-Lucent to Acquire WDM Maker Tropic Networks

Alcatel-Lucent today announced plans to acquire WDM maker Tropic Networks, Inc., a partner since 2004, for an undisclosed sum. The deal targets the metro portion of evolving service provider networks.

As providers deploy more broadband services – including IPTV, gaming and VoD – to the home, they seek greater bandwidth and provisioning flexibility in metro networks. This raises the demand for ROADMs.

ROADM technology first was developed for use in long haul and ultra long-haul networks, but it has fast found its way into metro networks. Carriers such as Verizon Communications Inc., for example, are embracing ROADM to better manage bandwidth while also addressing operational costs.

In a press release, Alcatel-Lucent said the acquisition represents “a new, strategic step in focusing on telecom and cable operators' key requirements for simplified network planning, accelerated wavelength/service provisioning and advanced optical monitoring technology that eases overall maintenance activities across their optical infrastructure.”

The company did not detail its post-acquisition plans for Tropic Networks as far as operations, potential management moves or handling of the firm’s resources.

Alcatel-Lucent only noted that integrating Tropic Networks’ key intellectual property, namely the Wavelength Tracker, enhances the competitiveness of Alcatel-Lucent's optical product portfolio.

"We are strengthening our value proposition for photonic networks with innovative solutions that complete both cable and telecom service providers’ requirements," said Romano Valussi, president of Alcatel-Lucent's Optics activities, in prepared comments. "We are continuing to make strategic moves that serve our customers with the ability to successfully address new opportunities for the end-users' benefit."

Alcatel-Lucent’s stocks had risen just more than 3 percent by midday Tuesday, to $12.22 from an opening price of $11.99.

Alcatel-Lucent www.alcatel-lucent.com
Tropic Networks Inc. www.tropicnetworks.com
Verizon Communications Inc. www.verizon.com

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