Nortel Networks announced Tuesday it will acquire Tasman Networks, a provider of enterprise-level routers, for US$99.5 million.
The cash deal is expected to close in the first quarter of 2006, Nortel said in a news release. Tasman, founded in 1997, is based in San Jose, California, and makes low-cost, standards-based WAN (wide area network) routers and other network gear.
Tasman's IP (Internet Protocol) routers will be incorporated into the company's convergence products and marketed as part of its Secure Router line, Nortel said. Those products are directed at small to medium-sized deployments that support voice, VPN (virtual private networks) and firewalls, Nortel said.
Tasman, which competes with Cisco Systems and Juniper Networks in the router market, has a low profile due to the fact that most of its products are sold to carriers that rebrand them as part of a managed service for network connectivity. Other Tasman products are also rebranded by network equipment vendors.