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Lucent to take over Chromatis

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CIOL Bureau
New Update

In an effort to keep up with rival Cisco Systems in the exploding market for

optical networking technology and equipment, Lucent Technologies is reportedly

close to paying $6 billion to take over start-up Chromatis Networks of Herndon,

Virginia.

Chromatis has developed advanced new optical networking equipment that allows

voice, data and video to run efficiently over the optical network on a company

campus or across an entire city. The equipment is still in beta test development

phase.

Cisco has invested close to $10 billion in the past year in companies

specializing in high-end optical networking and communications technologies. One

such investment was a whopping $7 billion take-over of Cerent, a start-up like

Chromatis with no revenue to speak of. But in less than six months, Cisco has

turned the investment into a major new source of sales and profits. The company

estimates Cerent-based sales could top $1 billion this year.

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