Nortel Completes Acquisition of PEC Solutions, Forming Nortel PEC Solutions

Nortel has finalized the acquisition of PEC Solutions, creating a powerful entity that will provide mission-critical technology solutions to U.S. federal, state, and local governments. The deal, announced on April 26, 2005, brings together a leader in government IT professional services with a leader in networking technology and expertise. The combined entity, Nortel PEC Solutions, will operate under the name and focus on delivering a comprehensive portfolio of technology and services to support the livelihood, security, and well-being of U.S. citizens.

Key Takeaways:

• The acquisition creates a U.S. entity, Nortel PEC Solutions, which will operate as a subsidiary of Nortel Networks Inc. (NNI) and provide mission-critical technology solutions to U.S. governments.
• The combined entity will focus on areas that complement Nortel's existing strengths, with the goal of nearly doubling Nortel's federal business.
• Nortel PEC Solutions will engineer, deploy, and manage mission-critical solutions for Government, particularly Homeland Security, criminal justice, and intelligence agencies.
• The company will have 30 program offices in the U.S., with locations in nine states and the District of Columbia.
• Key members of PEC Solutions' leadership team, including CEO David C. Karlgaard, President Paul G. Rice, and Chief Operating Officer Alan H. Harbitter, will remain on the senior executive leadership team of Nortel PEC Solutions.
• Nortel PEC Solutions will aim to become a trusted partner of the U.S. government, supporting the livelihood, security, and well-being of U.S. citizens.

Statistics:

• The acquisition was announced on April 26, 2005.
• Nortel PEC Solutions will operate with 30 program offices in the U.S., covering nine states and the District of Columbia.

Sources:

• WIRELESS NEWS-(C)1999-2005 10Meters - http://www.10meters.com
• Nortel Networks Inc. (NNI)
• M2 Communications Ltd - http://www.m2.com