On Our Way to Becoming the Best Communications Company in the World
I am delighted to share with you the news that The Gores Group has signed a definitive agreement to form a joint venture with Siemens, AG that will combine Siemens Enterprise Communications, Enterasys and SER Solutions, Inc. Combining the three companies will leverage Siemens powerful distribution capabilities, global reach and extensive customer base. The complementary technologies will unify voice/data/contact center communications and secure wired/wireless networks. The joint venture will be very solidly financed and entitled to continue using the Siemens brand – one of the Top 50 brands in the world.
“This has the potential of creating an enterprise systems and software powerhouse…”
Brian Riggs,
Current Analysis
Enterasys and Siemens Enterprise Communications are an outstanding strategic fit, which accelerates our strategy to create a clear alternative in the enterprise networking and communications industry. After the close of the transaction, our first step will be to build the business -- both organically and through acquisitions. To that end, Gores will continue to aggressively pursue acquisitions to add additional technologies to the portfolio of products and services to further drive the expansion of the business and capitalize on the powerful Siemens Enterprise Communications distribution organization.
“Gores is more committed to Enterasys than ever…need Enterasys to make the whole thing work.”
Steve Schuchart,
Current Analysis
Enterasys Secure Networks and Siemens voice solutions have been integrated with each other for over a decade, and our latest technology collaboration was demonstrated at CeBIT 2008 where Enterasys NAC and the Siemens HiPath real-time IP system showed identity-based and location-based services. Unique is our commitment to open-architecture, standards-based technology that integrates with existing multi-vendor environments, aligns networks with business priorities, and delivers long useful technology lifecycles.
“I think Enterasys customers should be thrilled…”
Rob Whiteley,
Forrester Research
Now, through increased scale and brand recognition, Enterasys will be better positioned globally to deliver secure networks that ensure the confidentiality, integrity, and availability of IT services and the business users that rely on them – without sacrificing performance.
Enterasys will continue to operate in a business as usual manner. Therefore, expect no changes to the engineering, professional services, sales, solution engineering, support and training resources you work with every day. No changes are anticipated to the development, support, marketing or selling of particular Enterasys products – in fact, we envision an acceleration and broader awareness of the Enterasys convergence, compliance and connectivity solutions. We remain committed to investing in research and development to deliver new products. Service, maintenance and support contract terms remain unchanged.
“Enterasys customers: Continue to deploy these products and assess the opportunity to provision these technologies in more locations.”
Mark Fabbi,
Gartner ID# G00160315
We expect the transaction, which is subject to customary closing conditions and regulatory approvals, to close on or before 30 September 2008. We will keep you informed of new developments as they occur. The joint venture will be 51% owned by the Gores Group. On an operational level, business will be driven by Gores who will work with the current Enterasys, SER and Siemens Enterprise Communications management teams and employees diligently to fulfill our customers’ needs, and to expand the business. Mark Stone from Gores will be the Chairman and interim CEO of the joint venture.
“Enterasys has found its billion-dollar buy…the result will be a $5 billion firm with more than 1 million customers, 15,000 employees and a presence in 80 countries…”
Jim Duffy,
Network World
“In short, this JV creates a global provider of enterprise networks and communications, which is matched and surpassed only by Cisco… Enterasys and SER customers should be delighted as there will now be a new path for their products.”
Nick Lippis,
The Lippis Report
I can assure you that Enterasys will continue to earn the right to your business. We will compete fairly on value, technology, domain expertise, and customer support to maintain the honesty, integrity and respect that you would expect of a world-class company.
I would like to extend a personal thank you for your continued loyalty and support during these times of change at Enterasys. My passion is to build companies that last – with this in mind, I am focused on helping the new joint venture be the best communications company in the world. The quality of the relationships with our customers will be our indicator of success. I look forward to working with you for the future benefit of all our organizations.
“The bottom line for existing and prospective customers is positive. Existing products will continue to be supported and new products will continue to be developed.”
Sheila McGee-Smith,
No Jitter
“I think this will be entirely to the benefit of customers – both Siemens current base and all the rest.”
Marty Parker,
No Jitter
If you have any further questions or concerns I encourage you to contact Enterasys at 877-801-7082 for North America, +55 11 3525 4600 for Latin America, +65 632 99733 for APAC, and +49 (0) 69 47 8600 for EMEA. Please also feel free to contact me directly at +1 978 684 1234 or mike.fabiaschi@enterasys.com.
Sincerely,
Mike Fabiaschi President & CEO
Enterasys Secure Networks