12/17/2002 - Clarent Corporation (OTC:CLRN) announced that it has signed a definitive agreement with Verso Technologies Inc. (NASDAQ:VRSO) an Atlanta-based, integrated switching solutions company. Under the terms of the agreement Verso is expected to acquire substantially all the business assets of Clarent for approximately $9.8 million consideration in a combination of cash and notes. As part of the agreement, Clarent is expected to file for voluntary reorganization under Chapter11 in the United States Bankruptcy Court for the Northern District of California, San Francisco Division.
“Given the current state of the telecom industry, litigation and other obligations facing Clarent, the Board of Directors has determined a sale of assets to Verso offered the best available option for our company and our customers. The agreement with Verso is expected to offer Clarent’s current product line a safe, synergistic and financially strong home and ensure that product development and service can continue,” said James B. Weil, President of Clarent. “The Chapter 11 filing will provide Clarent with the time and means needed to resolve its legal issues, while maintaining normal business operations. Clarent products and support will be available during the reorganization period. Daily operations at Clarent’s NetPerformer and Softswitch business units will carry on as usual,” Weil, continued.
Clarent expects the transaction to close and the assets to transfer to Verso within ninety days. In the meantime, Clarent product development and support as well as product shipment and sales are expected to continue as usual.
About Clarent Corporation
Clarent Corporation is a leading provider of softswitch and enterprise convergence solutions for next generation networks. Clarent solutions enable service providers and enterprises to quickly deploy an integrated network capable of carrying both voice and data traffic, deliver capital and operating expense savings, and generate new revenue opportunities with innovative services. Founded in 1996, Clarent is headquartered in Redwood City, California, and has offices in North America, Europe and Asia. For more information please visit www.clarent.com.
About Verso Technologies, Inc.
Verso Technologies provides integrated switching solutions for communications service providers who want to develop IP-based services with PSTN scalability and quality of service. Verso's unique, end-to-end native SS7 over IP capability enables customers to leverage their existing PSTN investments by ensuring carrier-to-carrier interoperability and rich billing features. Verso's complete VoIP migration solutions include state-of-the-art hardware and software, OSS integration, the industry's most widely used applications and technical training and support. For more information about Verso Technologies, contact the company at www.verso.com or by calling (678) 589-3500.
Clarent, and the Clarent logo are trademarks or registered trademarks of Clarent Corporation in the United States and other jurisdictions.
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