Press Releases

2009

Turin Networks Announces Definitive Agreement to Merge with Force10 Networks

Delivering Focused Solutions for Growing Enterprise and Service Provider Markets

PETALUMA, Calif., January 5, 2009 – Turin Networks, Inc., a leading global provider of innovative Wireless Backhaul, Carrier Ethernet and Converged Access solutions for wireline and wireless network operators, today announced a definitive agreement to merge with Force10 Networks Inc., the pioneer in building and securing reliable networks.  The combined companies will have more than 1,300 customers worldwide, including a number of top-tier service providers and premier enterprise data centers. The expanded product portfolio will enable the company to provide new solutions and services to both markets, as well as leverage their existing sales channels.

Upon completion of the merger, the two organizations will operate under the name of Force10 Networks, Inc., focusing on both the enterprise data center and service provider markets.  Henry Wasik, president and CEO of Turin Networks, will become the president and CEO of the combined entity. Current Force10 Networks president and CEO James Hanley will assume the role of president, field operations with responsibility for sales, marketing, services and business development.

“The inherent synergies of Force10 Networks and Turin Networks create opportunities to leverage existing joint distribution, integration and technology alliance partners that will strengthen the new company’s presence in both the enterprise data center and service provider markets,” said James Hanley, president and CEO of Force10 Networks. “This merger creates both operational efficiencies and market focus in two high growth high performance networking segments. The new company will also be positioned over time to deliver innovative new product solutions through the integration of Turin Networks’ wireless backhaul, metro service edge and converged access products and Force10 Networks’ access switches.”

“Delivering both innovative data center solutions for virtualization and 10 Gigabit Ethernet, as well as a broad range of solutions that enable diverse service providers’ to migrate to carrier Ethernet-based converged networks are the basis for our continued growth. Strategically, the merged company will be the only private networking company that is a leading player in three of the fastest growing segments of the networking market,” said Henry Wasik, president and CEO of Turin Networks. “High capacity system architecture and reliable modular software are essential for the next generation data center, and we see similar requirements to facilitate the transition from legacy networks to a more cost effective, packet-optimized infrastructure for wireless backhaul and metro Ethernet service delivery. This transition creates new and exciting opportunities for the combined company to develop products that leverage both of our core competencies and to deliver long term technology leadership and customer value.” 

Turin Networks is a leading provider in the wireless backhaul aggregation market with products deployed in more than 60 thousand North American cell sites, while Force10 Networks has the industry’s second highest revenue share for total 10 Gigabit Ethernet, as ranked by the Dell’Oro Group.  Industry analyst firm IDC projects two million 10 GbE ports will be deployed in data centers worldwide next year, while data center Ethernet switching revenue will grow at a CAGR of 8% to reach $6.4 billion in 2012.  Industry analyst firm Ovum RHK expects the market for pseudowire and Ethernet backhaul transport equipment to grow by more than a factor of 10 between 2008 and 2012, reaching more than $5 billion in 2012.

The merger is expected to be finalized by March 2009, pending the completion of legal and regulatory filings. Advanced Equities served as a financial advisor on this transaction. The combined company will be headquartered in San Jose, California, with sales offices worldwide and research centers in Chennai, India and Shanghai, China.

About Turin Networks
Turin Networks, Inc., is a leading global provider of Carrier Ethernet solutions for wireline and wireless network operators. Turin’s iConnect™ solutions address the real-world challenges for network operators providing Wireless Backhaul, Carrier Ethernet, and Converged Services. Turin’s solutions have been deployed by more than 600 customers worldwide, including the top five wireless network operators in the U.S., as well as 11 of the top 17 broadband internet providers. Turin products increase network efficiency and capacity, and facilitate the migration to Carrier Ethernet. Turin is headquartered in Petaluma, Calif., with research and development facilities in Boulder, Dallas, Boston, and Shanghai, and sales offices throughout the world. For more information, visit www.turinnetworks.com or call 707-665-4400.

About Force10 Networks
Force10 Networks is the global technology leader that data center, service provider and enterprise customers rely on when the network is their business. The company’s high performance solutions are designed to deliver new economics by virtualizing and automating Ethernet networks.  Force10’s high density and resilient Ethernet switching and routing products increase network availability, agility and efficiency while reducing power and cooling costs.  Force10 provides 24x7 service and support capabilities to its global customer base in more than 60 countries worldwide.  For more information on Force10 Networks, please visit www.force10networks.com.

Contact:
Kevin Kimball
Force10 Networks Inc.
+1 408 571-3544
kkimball@force10networks.com

Force10 Networks, the Force10 Networks logo, Force10, E-Series, Traverse, and TraverseEdge are registered trademarks and ExaScale, S-Series, TeraScale, and FTOS are trademarks of Force10 Networks, Inc. All other company names are trademarks of their respective holders.