December 26, 2000, 1:28 PM — WEB CONTENT SWITCHING specialist Alteon WebSystems announced Monday that it has reached a definitive agreement to acquire Swedish Internet software start-up Bluetail in a stock deal valued at $152 million.
Under the terms of the all-stock deal, shareholders of Stockholm-based Bluetail will receive 0.62995 shares of Alteon WebSystems common stock in exchange for each share of Bluetail common stock, according to a joint statement.
Founded by a group of former L.M. Ericsson Telephone engineers in January 1999, Bluetail develops and markets Web traffic management software. The company's software enables traffic prioritization and personalized content services, the statement said.
Alteon WebSystems said Bluetail's software will play a key role in its newly introduced Webworking framework, aimed at taking advantage of the convergence of intelligent Web switching and Web computing,
Bluetail's software will be integrated into a suite of new Webworking applications developed for Alteon WebSystems' integrated ServiceDirector platform.
Alteon WebSystems, in San Jose, Calif., is itself being purchased by Nortel Networks in a deal that was valued at $7.8 billion when it was signed in July.