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Computer industry

Ascend Communications Acquires Stratus Computer in $822 Million Deal

Strategic Insights

— 1 min read

Ascend Communications, a leading provider of digital-switching and WAN solutions, has announced a definitive agreement to acquire Stratus Computer, a Massachusetts-based developer of Signalling System No. 7 (SS#7) switches and operation support system (OSS) software. The acquisition, valued at $822 million, is expected to create a new market opportunity for Ascend's products, with President and Chief Executive Officer Mory Ejabat stating that the deal "opens up a $10 billion new market opportunity for Ascend's products."

Key Takeaways:

  • Ascend Communications has acquired Stratus Computer in a deal valued at $822 million.
  • The acquisition creates a new market opportunity for Ascend's products, valued at $10 billion.
  • Stratus Computer develops Signalling System No. 7 (SS#7) switches and operation support system (OSS) software.
  • Ascend plans to structure Stratus' "nontelecom" operations as separate subsidiaries and sell them off by year-end.
  • The combination of Ascend's switching solutions and Stratus' SS#7 and OSS products will enable carriers to provide new services such as Internet telephony.
  • Mory Ejabat, President and Chief Executive Officer of Ascend Communications, emphasized the potential of the acquisition to enable carriers to provide new services to end users.
  • The acquisition is expected to expand Ascend's product offerings in the telecom carrier market.

Statistics:

  • The acquisition is valued at $822 million.
  • The new market opportunity created by the acquisition is valued at $10 billion.
  • Ascend Communications provides digital-switching and WAN solutions for telecom carriers, Internet service providers, and large corporations.
  • Stratus Computer operates in the enterprise computer market and manufactures financial and enterprise software.
  • Ascend plans to sell off Stratus' "nontelecom" operations by year-end.

Sources:

  • "Ascend Communications Acquires Stratus Computer in $822 Million Deal" (Exact citation not provided in original text, but assumed to be a news article)

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