Canadian telecommunications giant Northern Telecom has announced the acquisition of California-based Bay Networks for $9.1 billion (£6.6 billion). Nortel employs 900 staff in Galway and Bay Networks recently announced a $10 million investment to expand its operations at the Shannon Free Zone in Co Clare, where 67 people are employed. Bay Networks' shareholders approved the merger in a meeting Friday, Nortel said, which called the acquisition the largest ever in the networking sector.

Nortel has customers in more than 150 countries and territories working to design, build and integrate communications products and advanced digital networks. Bay Networks is a leader in the worldwide networking market, offering Ethernet, shared media, remote and Internet access, IP services and network management.