Lucent Strengthens Networking Services With INS Buy

Lucent Technologies will buy International Network Services (INS) for $3.7 billion, or about $54 a share. Lucent is targeting the rapidly growing market for consulting, design, integration, and support for voice and data networks. "Lucent is focused on the fastest growing markets in communications networking," says Rich McGinn, Lucent chairman and CEO. "And professional services and support is clearly one of them. The convergence of voice and data is driving tremendous demand for services and support. Businesses and service providers are looking for help in designing, managing, and evolving their increasingly complex multivendor networks." Based in Sunnyvale, Calif., INS is the world's largest independent network consulting provider. The market for services and support for communications networks is estimated by Lucent to be growing at more than 16% annually from $96 billion in 1999 to $153 billion in 2002. In fiscal 1999, INS' revenues grew at five times that rate. INS will become part of Lucent's NetCare organization. John Drew, currently president and CEO of INS, will lead the combined organization of 5,500 people. The merger is expected to be completed during Lucent's first quarter of fiscal 2000, which ends on Dec. 31, 1999.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish