STOCKHOLM, March 15, 2004
- Net Insight today announced an agreement to acquire privately held Q2 Labs AB, founded in 2003 by a team comprised of former Qeyton Systems engineers (acquired by Cisco in 2000) and Cisco Photonics Sweden.
The acquisition of Q2 Labs enhances Net Insight's existing product portfolio with integrated CWDM (Course Wave Division Multiplexing) transport functionality and Next Generation SDH/Sonet (GFP). Further, the combination of the Q2 Labs optical team with the Net Insight networking and switching competence strengthens the continuing development of the Nimbra(TM) product platform. Q2 Labs brings not only developed components but also unique know-how in cost-effective product architecture and design. Q2 Labs has market recognition based on previous success within Qeyton and Cisco, which will help Net Insight to broaden its contacts against customers and partners.
By adding new features and introducing new products Net Insight's competitive leading edge in Triple Play and PMI transport will be strengthened further.
Under the terms of the agreement, 2.5 million Net Insight's shares of series B will be exchanged for all outstanding shares of Q2 Labs (approx. 1 percent dilution in Net Insight). The acquisition of Q2 Labs is expected to close in the first quarter of Net Insight's fiscal year 2004. The acquisition has been approved by the board of directors of each company, all key employees and all shareholders in Q2 Labs. Further, the transaction is subject to various closing conditions, such as approval by the annual shareholders meeting in Net Insight.
Some of the members of the team will join on project basis, others will be employees of Net Insight. Q2 Labs is owned by its founders and external shareholders, among others, two of Net Insight's major shareholders, Lars Egnell (owning 11.2 % of Q2 Labs) and Pelago Venture Partners AB (owning approximately 3.7 % of Q2 Labs).
"Net Insight will be even more competitive by combining world-leading competence within optical transmission and switching. This acquisition will give us an enhanced and more complete product portfolio which increases our edge further with customers and partners and creates conditions to work more efficiently on our prioritized market segments, Triple Play and media networks", says Tomas Duffy, CEO of Net Insight.
For more information, please contact:
Tomas Duffy, CEO, Net Insight AB.
Phone: +46 8 685 04 00, e-mail: tomas.duffy@netinsight.net