Nortel Networks has established its former NETGEAR subsidiary as a separate company. Nortel has aggressive plans to build on a leadership position in the high-growth market for home and small business Internet infrastructure solutions.
To assist with its new, independent focus on strengthening SOHO market leadership, NETGEAR has received a $15mn equity financing investment from Pequot Capital Management.
Bryan Thompson, business manager of Nortel Networks Enterprise Solutions division, says: "The NETGEAR spin-off continues Nortel Networks` successful strategy of establishing independent, flexible businesses to accelerate the adoption of innovative new technologies."
Patrick Lo, newly appointed chief executive officer of NETGEAR, says the company is committed to providing its customers with the best possible networking and Internet connectivity solutions.
"As this market booms in the coming years, customers will be looking for affordability, ease of use, expanded functionality and outstanding customer service, all the cornerstones that NETGEAR is known for in the market today," he says.
"NETGEAR has the best existing home and small office networking and Internet solutions we have seen," said Jim McNiel, senior vice president of Pequot Capital. "The market for NETGEAR solutions is already large, and we believe continued demand for home computing, broadband connectivity, mobility and Internet appliances will further accelerate NETGEAR`s growth."
As many as 24 million American homes will have computer networking by the end of this year, and the home networking market will grow to US$1.4 billion by 2003, according to Cahner`s In-Stat, a leading industry research group.
Share
NETGEAR
NETGEAR is creating an Internet infrastructure for the home that will enable consumers to connect all types of IP (Internet Protocol)-enabled products. NETGEAR shipped the first 10 megabits per second (mbps) home phone line networking product last fall, and will be among the first companies to offer an affordable 11 mbps wireless solution this year.
Nortel Networks
Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The company had 1999 revenues of $21.3bn and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit Nortel at www.nortelnetworks.com.