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Nortel Acquires EPiCON to Increase Share of ASP Market

Nortel Networks announced an agreement to acquire EPiCON Inc. for $275 million in Nortel Networks common stock. Nortel and EPiCON are providers in the application service provider (ASP) market.

Nortel Networks (www.nortelnetworks.com) currently owns nine percent of EPiCON (www.epicon.com) on a fully-diluted basis, following a minority investment last year.

EPiCON has developed software that enables ASPs to deploy, install, manage, and update software to thousands of desktops from a central server. EPiCON's software will become part of Nortel Networks' Preside Managed Application Service platform, an open and extendable software-based solution that will enable service providers to roll out and manage multiple e-business and other applications for their customers.

EPiCON's technology will be a key differentiator in Nortel Networks' overall operations support system (OSS) for the ASP and hosting markets. The technology will enable service providers to deliver applications to the desktop, assure their operation with self-healing capabilities, and automatically handle software distribution and revision control to Windows-based desktops. It will be compatible with leading systems management tools and complements the Nortel Networks ASP and hosting portfolio comprised of network and Internet Data Center infrastructure, hosted applications, professional services, and Nortel Networks Preside service and network management. - Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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