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Nokia to Buy Amber Networks in Stock Deal

Company Town | IN BRIEF / Technology

July 26, 2001|Bloomberg News

Cellular phone maker Nokia said it will purchase closely held Amber Networks Inc. of Fremont, Calif., to acquire networking gear used to direct Internet traffic.

Finland-based Nokia will exchange $421 million in stock for ownership of Amber Networks, Nokia spokeswoman Virve Virtanen said. Nokia didn't specify when the acquisition is expected to close.

Nokia is adding products for networks that direct Internet traffic between business customers and telecommunications networks to help it compete with rivals such as Cisco Systems Inc.

Amber Networks has 223 workers, Nokia said. Amber Networks trimmed 12% of its work force in May as telecommunications service providers reduced spending on networking equipment, its Web site said.

Nokia stock rose 41 cents in New York Stock Exchange trading to close at $19.61.

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