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Lucent acquires Livingston

Lucent Technologies continues its calculated foray into the data networking business with the acquisition of Livingston Enterprises for $650 million worth of stock.

    Lucent Technologies ( LU) continued its calculated foray into the data networking business today with the acquisition of remote access specialist Livingston Enterprises for $650 million worth of stock.

    The former equipment component of telephone giant AT&T has dived quickly into new markets since it was freed of its former parent company last year.

    Livingston makes remote access equipment and software that allows hundreds of users to dial into large enterprise corporate networks or Internet service providers. The move follows the recent introduction of a new line of switches based on asynchronous transfer mode (ATM) technology. Lucent also acquired local area networking player Agile Networks last year.

    The transaction is expected to close by the end of this year. Livingston's operations will remain in Pleasanton, California. The transaction will result in a one-time charge against Lucent's earnings that will be reflected in the company's fiscal 1998 first quarter.

    Lucent said the deal is expected to be "slightly" dilutive to earnings in the first year, and "neutral" by the second year.

    Privately-held Livingston was founded in 1986 and claims to have sold products to over 2,200 ISPs worldwide.