Lucent Buying Firm to Boost Consultant Role

Lucent Technologies Inc. said Tuesday it agreed to buy communications consulting firm International Network Services for $3.7 billion in a move to strengthen its efforts at helping customers blend voice and data networks.

Sunnyvale, Calif.-based INS helps corporations and telecommunications providers design, install and maintain computer and communications networks. The company had sales of $315 million last year.

The INS acquisition would enable Lucent, the No. 1 telecommunications equipment maker, to expand beyond its core business as a vendor and quickly become a leader in support and consulting services, analysts said.

Under the terms of the agreement, each share of INS would be converted into 0.8473 share of Lucent. Based on Lucent’s closing stock price Monday of $63.63, the merger would be valued at about $3.7 billion, or $54 a share, a 14% premium over INS’ closing stock price of $47.44 on Monday. The merger is expected to be completed by the end of the year.