Tellabs acquires Zeugma to enhance its mobile core capabilities

As Tellabs (Nasdaq: TLAB) looks to advance its presence in the mobile packet core market segment it has acquired the former Zeugma Systems' technology and intellectual property expertise.

In September, Zeugma--the developer of an edge networking solution that claimed to integrate routing, subscriber management, and service management into one box--closed its doors for good.

Tellabs will use Zeugma's assets as the foundation for a new research and development lab to be based in Vancouver.

Although it did not specify the terms of the acquisition due to competitive concerns, Tellabs did reveal that it did buy all of Zeugma's assets and that an undisclosed number of former Zeugma employees will join Tellabs' Vancouver R&D lab to work on developing Tellabs Mobile Solutions.

While Tellabs has a strong presence in all of the U.S. and international wireless operators' networks selling its traditional TDM and IP-based transport products for wireless backhaul, the packet core segment is a relatively new area for the company.

Much like it bought its way into the wireline last mile network space with the acquisition of the former AFC, Tellabs has been reaching out into the market to acquire assets of smaller companies like Zeugma and WiChorus to develop its wireless core packet strategy.

For more:
- see the release

Related articles:
Tellabs: Q3 revenue was up, but Q4 outlook disappoints analysts
Tellabs Q2 earnings up, but potential AT&T loss drives down shares
Sizing up the wireline industry in the third quarter 2010
Tellabs snaps up WiChorus for 4G packet core play

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