Genband/Tekelec a done deal

We wrote last issue about rumors of Genband buying Tekelec's switching business. Monday evening, Genband execs declined to comment. Tuesday afternoon, they handed around a press release announcing the sale. Tekelec got into the switch business by buying Santera Systems and Taqua; it's getting out of the business by essentially selling those assets and its SSG group to Genband for just under 20 percent of Genband. Tekelec's taking quite a haircut: the company said it expects to realize a net loss of between $55 million and $70 million on the sale (although, by the miracle of tax accountancy, it doesn't expect it to much effect on its cash holdings. The deal is expected to close next month.

For more information about the Genband Tekelec purchase:
- see Genband's release

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