Switched At Birth: Merger Unites Broadband Hopefuls

In a deal anticipating the coming growth of combined voice and video applications for the Web, Internet switching companies (www.redback.com) Redback Networks and (www.siara.com) Siara Systems plan to merge in a transaction valued at $4.3 billion.
     "We expect the combination of Siara Systems and Redback to create a powerful supplier in the communications industry, focused on serving the next generation access and service creation requirements of carriers and service providers," said Dennis Barsema, CEO and president of Redback Networks, which is based in Sunnyvale, Calif.
     Redback already claims to be the leading supplier of subscriber and service management solutions for the broadband market. With the Siara merger it aims to become what both companies believe is the first equipment supplier focused on developing integrated solutions for the so-called New Access Network. The network, which is fueled in part by the massive growth of installed fiber optic cable in metropolitan areas, is expected to span all layers of transport and services from the edge of the optical core to global corporate networks to individual broadband subscribers.
     Siara Systems, founded in June 1998, develops multi-service platforms for next-generation access networks. It does not yet have products on the market. The new company will have a combined market value of $11.2 billion. It will retain the name Redback Networks, and global headquarters will remain in Northern California.