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This morning, Tekelec (TKLC) announced that it had sold the Switching Solutions Group [SSG] to GenBand. I posted earlier on what I thought this meant for Tekelec and this is what I think the deal means for GenBand and other competitors in the market.

  • I would expect to see an S-1 filing from GenBand within weeks of the closing of the deal. In fact, if I was running GenBand, I would have a team of bankers working on a pre-closing proxy filing of an S-1 today.
  • The good news for GenBand is they have enough revenues to go public. The bad news is they have a cost intensive R&D model. It will be interesting to see if GenBand can manage the OPEX on the R&D side.

  • Sonus (SONS), Nortel (NT), Ericsson (ERIC) and Alcatel/Lucent (ALU) have a new competitor in the market for tier 2/3 service providers.
  • Source: GenBand Acquires Tekelec's Switching Solutions Group