Lucent buys Riverstone for $170 million
Riverstone, which has been under SEC investigation since 2003, will file for Chapter 11 bankruptcy protection.
Marguerite Reardon Former senior reporter
Marguerite Reardon started as a CNET News reporter in 2004, covering cellphone services, broadband, citywide Wi-Fi, the Net neutrality debate and the consolidation of the phone companies.
Lucent Technologies announced on Tuesday that it has agreed to pay $170 million in cash to buy some assets from Riverstone Networks, which makes Ethernet routers. As part of the deal, Riverstone, which has been under investigation by the U.S. Securities and Exchange Commission since April 2003, will file for Chapter 11 bankruptcy protection.
Lucent plans to use the Riverstone equipment and technology to compliment its broadband, data and optical-networking products, the company said. Lucent has been reselling Riverstone equipment since 2004. All of Riverstone's 400 employees are expected to join Lucent.