Electronic Engineering Times

Redback to acquire Siara for $4.3 billion -- Startup nets megabucks.(Company Business and Marketing)

SUNNYVALE, CALIF. - Redback Networks Inc. ratcheted the valuation craze up another notch last week, when it announced it would acquire Siara Systems Inc., a Mountain View, Calif., startup broadband-access specialist, for stock valued at $4.3 billion.

Redback develops subscriber-management server computer systems for central offices, points-of-presence and cable head-ends, while Siara develops hardware dealing with transport- and routing-layer functions for both customer premises and central offices.

The sheer size of the acquisition caught market analysts by surprise. In late summer, Cisco Systems Inc. created a new metric-which some considered inflated in its own right-when it bought both Cerent Corp., an optical-access company in the early phases of product shipment, for $6. …

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