Juniper Networks

(JNPR) - Get Report

agreed to acquire

Siemens'

(SI) - Get Report

Siemens Unisphere Networks for $740 million in cash and stock.

Juniper said it would pay $375 million cash and $365 million in stock, based on Friday's closing price of $9.85 a share, for the unit. Siemens shareholders will receive about 36.5 million Juniper shares, giving them a 10% stake in the company.

Juniper expects the deal to close in the third quarter, lowering its earnings in 2002 but increasing them in 2003. Juniper and Siemens agreed to partner in IP infrastructure.