This morning, Tekelec (NASDAQ: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 (NASDAQ:SONS), Nortel (NT), Ericsson (NASDAQ:ERIC) and Alcatel/Lucent (ALU) have a new competitor in the market for tier 2/3 service providers.