Nortel to pay $290 million for data networking start-up

Northern Telecom, Inc. yesterday announced that as part of its drive into the data networking and Internet arena it is acquiring Aptis Communications, Inc., a remote-access networking start-up, for $290 million in Nortel stock and cash.

Nortel said it has entered into a definitive agreement to acquire Aptis, which makes carrier-class access switches, including the CVX 1800, for network service providers, carriers and Internet service providers.

Nortel's acquisition will spur its efforts in the remote access and virtual private network market, the company said. The acquisition will help Nortel move from its traditional base in voice telecommunications switches to offering equipment for ISPs and carriers scrambling to keep up with the exploding demand for Internet access, the company said.

Nortel plans to add digital subscriber line (DSL), Synchronous Optical Network (SONET) and Signaling System 7 (SS7) interfaces, network intelligence and network management capabilities to the CVX 1800, Nortel said.

This will allow Nortel to integrate Aptis' CVX1800 into its network applications in order to deliver integrated voice and data on IP networks, said Glenn Falcao, vice president and general manager of Nortel Public Data Networks, in a statement.

The CVX 1800 will be integrated into Nortel's current Internet Thruway and Multi-Megabit network offerings.

Aptis, based in Chelmsford, Mass., was formed in January 1997 and employs approximately 50 people.

Nortel, meanwhile, is battling fellow telecom giant Lucent Technologies, Inc. to get into the booming data networking market, where current market leaders include traditional router vendors such as Cisco Systems, Inc.