Ascend Announces Agreement for Sale of Non-Telecom Unit of Stratus Computer.ALAMEDA, Calif.--(BUSINESS WIRE)--Jan. 11, 1999-- Definitive Agreements for Divestiture of Software Units Expected In January, Furthering Ascend's Benchmark Acquisition Strategy Ascend Communications, Inc. (Nasdaq:ASND ASND A Streetcar Named Desire (play) ), a leader in wide-area networking (WAN) and Intelligent Network (IN) solutions for providers and users of the next generation public network, today announced that it has reached a definitive agreement regarding the divestiture of the Enterprise Computer Division of Stratus Computer, Inc., which it recently acquired. In addition, definitive agreements regarding the sale of Stratus' other non-telco units, TCAM (TeleCommunications Access Method) IBM communications software widely used to transfer data between mainframes and 3270 terminals. See access method. and S2, are expected later in January. In August of 1998, Ascend announced it was acquiring Stratus Computer, in order to accelerate the convergence of voice and data networks. The company closed the acquisition on Oct. 19, 1998. Ascend indicated at the time of the acquisition that it would actively pursue the divestiture of all non-telecom units. Ascend's acquisition of Stratus' telecom technology equips Ascend with SS7 software and technology, as well as fault-tolerant computing platforms that enable the integration of voice and data networks. Ascend's solutions based on these technologies enable network service providers to implement cost-effective, reliable and transparent means of relieving congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. while reducing operating costs operating costs npl → gastos mpl operacionales on the public switched telephone network (PSTN (Public Switched Telephone Network) The worldwide voice telephone network. Once only an analog system, the heart of most telephone networks today is all digital. In the U.S. ). Under the terms of the agreement, Ascend will sell the Enterprise Computer Division to an investment group led by Investcorp, a global investment group. The new company will retain the name Stratus Computer, Inc. and will continue to develop and market fault-tolerant computing platforms for enterprise markets. Upon completion of the project, current division head Steve Kiely will then assume the role of president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . (a) In what has been one of the most successful technology acquisition strategies in recent years, Ascend has moved quickly to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the acquisition of SS7 and carrier signaling technology through the Stratus merger. Subsequent to the closing of the merger on Oct. 19, the company announced in November that it had begun shipping the Ascend SS7 Gateway (ASG ASG Assign ASG Allen Systems Group (Naples, FL) ASG Abu Sayyaf Group (terrorist group) ASG Associated Student Government ASG Area Support Group ASG Adaptive Services Grid ASG Assistant Secretary General ), the first commercially available solution for relieving congestion on the public switched telephone network (PSTN). This new product is based in part on technology acquired from Stratus. "Our strategy to divest all related non-telco Stratus business units is progressing on plan, enabling us to strengthen our focus and leadership in providing solutions for the next generation public network," said Mory Ejabat, president and chief executive officer of Ascend. "This agreement brings us closer to the completion of our successful acquisition of Stratus Computer telco assets, which is enabling us to build and provide a seamless infrastructure for the future of data networking." About Ascend Communications Ascend Communications, Inc. develops, manufactures, sells and services wide area networking solutions for telecommunications carriers, Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and corporate customers worldwide. For more information about Ascend and its products, please visit the Ascend Web site at www.ascend.com, or send e-mail to info@ascend.com. Ascend is headquartered at One Ascend Plaza, 1701 Harbor Bay Parkway Bay Parkway refers to the following roads and transit stations: Roads
The foregoing statements may contain forward looking statements that are based on current expectations and involve risks and uncertainties. Actual results could differ materially from these expectations as a result of factors including, but not limited to, the Company's success in developing, introducing or shipping new products, competition, the mix of distribution channels employed, the Company's dependence on single or limited source suppliers for certain components used in its products, risks inherent in international sales, seasonality and general economic conditions. These and other factors are discussed in Ascend's 10-K, 10-Q and other filings made periodically with the Securities and Exchange Commission. (a) Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : See Stratus Computer press release at www.stratus.com issued today for more details. |
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