Nokia Corp. (NYSE: NOK) said Thursday it will buy Ramp Networks (Nasdaq: RAMP), a provider of purpose built Internet security appliances specifically designed for small office applications.
Ramp shares closed up 0.38 to 4.97 Wednesday. Shares in Nokia closed at 51.38. The company has been faring well compared to other companies in the wireless phone business, such as Motorola (NYSE: MOT), which lowered fourth quarter estimates for the second time Thursday. Nokia extended its growth target this week to include revenue growth targets of 25 percent to 35 percent for 2002 into 2003.
The acquisition will allow Nokia to expand its network security business, which already serves large and medium-sized customers, into the small office sector.
Under the terms of the deal, Nokia has agreed to commence a cash tender offer within ten business days for all the outstanding Ramp Networks shares at a price of $5.80 per share.
The Ramp Networks board of directors has approved the deal. The deal is expected to close in the first quarter of 2001. The holders of about 36 percent of Ramp Networks' shares have agreed to tender their shares into the Nokia offer. Nokia jumps on extended growth targets