Telefonaktiebolaget LM Ericsson has agreed to acquire Redback Networks, a maker of carrier edge routers, for US$2.1 billion. Redback, in San Jose, Calif., makes routers for delivering voice, video, data and mobility services at the outer edge of carrier networks. It will become a wholly owned subsidiary of Ericsson, the Swedish telecommunications giant, but will retain its management team, it said in a statement.Carriers that once delivered simple DSL Internet access are now delving into voice over IP, video and other services. As a greater variety of carrier services is delivered via IP networks, the devices closest to end users who consume those services have a more complex job to do. Founded in 1996, Redback has beaten some bigger rivals by focusing on multiservice router technology. After the acquisition, which is expected to close in early 2007, the company will accelerate its product development and gain global reach and financial resources, Redback said. Kevin DeNuccio, Redback’s president and chief executive officer (CEO), will report to a management board led by Ericsson President and CEO Carl-Henric Svanberg. Ericsson will make a tender offer for all outstanding shares of Redback stock at $25 per share. Before the deal was announced Tuesday, Redback (RBAK) shares on the Nasdaq had closed for the day at $21.17. -Stephen Lawson, IDG News Service (San Francisco Bureau) Related Link: Ericsson Trials Biodiesel to Power Mobile NetworksCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost ChatGPT and Your Organisation: How to Monitor Usage and Be More Aware of Security Risks By Hayley Salyer Jun 05, 2023 7 mins Chatbots Artificial Intelligence brandpost Who’s paying your data integration tax? Reducing your data integration tax will get you one step closer to value—let’s start today. By Sandrine Ghosh Jun 05, 2023 4 mins Data Management feature 13 essential skills for accelerating digital transformation IT leaders too often find themselves behind on business-critical transformation efforts due to gaps in the technical, leadership, and business skills necessary to execute and drive change. By Stephanie Overby Jun 05, 2023 12 mins Digital Transformation IT Skills tip 3 things CIOs must do now to accurately hit net-zero targets More than a third of the world’s largest companies are making their net-zero targets public, yet nearly all will fail to hit them if they don’t double the pace of emissions reduction by 2030. This puts leading executives, CIOs in particul By Diana Bersohn and Mauricio Bermudez-Neubauer Jun 05, 2023 5 mins CIO Accenture Emerging Technology Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe