Nortel Networks says it has completed its acquisition of U.S. optical networking systems maker Qtera for up to $3.25 billion in Nortel common shares.
Nortel, a global leader in communications equipment supplies, said the acquisition of privately held Qtera will enable Nortel to continue redefining the speed, reliability, quality, and economics of the Internet.
"We are moving at the speed of light to maintain our first mover advantage in the optical Internet space," said Nortel president and chief executive John Roth in a statement issued late Friday. "This new, high performance Internet will provide the foundation for a new era of e-business and communications."
As a result of the merger, Qtera became a wholly owned unit of Nortel, with each outstanding share of Qtera preferred stock and common stock converted into a right to receive 1.335 Nortel common shares, for a total of approximately 23 million Nortel common shares.
Nortel noted that up to $500 million in Nortel common shares may also be issued to former Qtera shareholders if Qtera achieves certain business objectives.
Qtera's operations will remain in Boca Raton, Florida, and Richardson, Texas. Qtera president and chief executive officer Fahri Diner will continue to lead the business as president, reporting to Mike Unger, president, Optical Networks, Nortel Networks.
Brampton, Ontario-based Nortel and its parent company, BCE, shocked markets Wednesday by announcing that BCE would spin off its Nortel ownership stake in an effort to unleash the value of other BCE holdings.
