On July 30, 2000, Redback Networks Inc. of Sunnyvale, California agreed to purchase Vancouver-based Abatis Systems, a maker of equipment that improves the installation and reduces the cost of internet-related networks, in a deal valued at US$636 million. Two of Abatis’ largest shareholders, Alcatel Networks Corporation (formerly Newbridge Networks Corporation) and Celtic House International, have agreed to vote their shares of Abatis in favour of the transaction. At the close of trading on the day the deal was announced, the market capitalization of Redback was in excess of US$17 billion.
Abatis relied on Ted Koffman and Linda Brown of McCarthy Tétrault’s Vancouver office for Canadian advice as well as Gary Kocher of Preston Gates & Ellis LLP of Seattle for US matters. Redback retained Gary Sollis of Fraser Milner Casgrain in Vancouver and Greg Miller of the Gunderson Dettmer firm in Menlo Park. Alcatel relied on in-house counsel Margot Panet and Michael Stewart as well as Osler, Hoskin & Harcourt LLP. Craig Wright, Derek Keay and Alex Kilgour of Osler, Hoskin & Harcourt’s Ottawa office provided Canadian advice while Lauren Boglivi of Proskauer Rose LLP in New York advised Alcatel on US matters. Celtic House, an Ottawa-based venture capital firm, relied on David Adderley, in-house counsel.