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Lucent Makes VoIP Acquisition

The company will acquire Telica for $295 million dollars.
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Monday said it would require


, a voice-over-Internet protocol communications company, for about $295 million dollars.

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The acquisition of Telica, a privately held company in Marlborough, Mass., will strengthen Lucent's position in the rapidly expanding VoIP business, which has attracted many of the industry's major players in recent months.

Under terms of the deal, Lucent will pay for the transaction in stock and options, and also make employee-related cash payments.

Lucent said the deal is expected to close in the fourth quarter and "may result in a one-time charge against earnings." The company also expects that the acquisition may be dilutive to 2005 earnings by approximately 1 to 2 cents a share, but neutral to slightly accretive in 2006.

Lucent will exchange 92.7 million shares of common stock and options for all of Telica's equity.

"Telica has a proven VoIP portfolio and has already sold its systems to more than 50 customers in a wide range of applications and networks," Lucent said in a statement.

Lucent shares fell 6 cents to $3.19 Friday.