Telecom hardware manufacturer Tekelec, which has a major operation in Morrisville, plans to raise $125 million through convertible notes due in 2008.

Tekelec said the proceeds would be used to redeem notes issued in 1999.

The company also said it has wrapped up its acquisition of Santera Systems, a switching firm.

“We have been very pleased by customer reaction to the Santera announcement and the recent positive comments by a number of service providers regarding their plans to implement packet networks,” said Fred Lax, chief executive officer of Tekelec, in a statement. “Recent developments in the voice-over-IP market strengthen our belief that this transaction positions Tekelec to be a preferred switching solution provider for service providers worldwide.”

Tekelec said the acquisition would reduce earnings by 6 to 8 cents per share through the rest of the year and by 3 cents in 2004.

Tekelec: www.tekelec.com