Cabletron to acquire frame relay innovator Netlink; Continues wide area network push with acquisition of leading frame relay provider.ROCHESTER, N.H.--(BUSINESS WIRE)--Sept. 27, 1996-- Cabletron Systems (NYSE NYSE See: New York Stock Exchange :CS), the leading provider of high-performance switching solutions, today announced it has entered into a merger agreement to acquire privately-held Netlink, an award-winning-(a) supplier of frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. access solutions for multi-protocol, mission-critical networks. Under terms of the merger agreement, 2,258,975 shares of Cabletron common stock will be exchanged for all outstanding shares of Netlink on a fully diluted basis. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. and a tax-free reorganization. The merger is expected to be completed by year end and is subject to various closing conditions, including approval by the Netlink shareholders. Cabletron intends to operate Framingham-based Netlink as a standalone business unit. Netlink employs approximately 80 people. Cabletron is acquiring Netlink to offer customers a wider choice of remote access technologies for linking branch offices, data centers and telco central offices. The acquisition aggressively positions Cabletron in the frame relay market, which is one of the fastest growing remote access services (communications) Remote Access Services - (RAS) A service provided by Windows NT which allows most of the services which would be available on a network to be accessed over a modem link. for linking multi-protocol LANs over a Wide Area Network. The worldwide frame relay market is expected to grow from $3.3 billion in 1996 to $11.2 billion in 1999, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Vertical Systems, a Dedham, Mass.-based research firm. "The Netlink acquisition complements Cabletron's existing strengths in ATM and LAN switching
LAN switching is a form of packet switching used in local area networks. Switching technologies are crucial to network design, or to that minority of LANs that are used outside the home. , enabling us to extend our SecureFast( switched-based virtual networking technology to geographically dispersed branch networks," said Craig Benson, Cabletron's chairman and COO. "Through Netlink, as well as our recent acquisition of Network Express, we have significantly expanded our remote access product portfolio, addressing customers' existing and future WAN requirements." According to Nina Saberi, Netlink's 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. , "The merger will allow Netlink to leverage Cabletron's strong worldwide presence, engineering and sales distribution resources to fully market Netlink's innovative frame relay technology. The combined product families of both companies will provide customers with innovative solutions for building high-performance switched virtual networks that support frame relay connectivity." Unlike traditional router-based architectures from other vendors, Netlink provides high-performance, switch-based frame relay solutions at a significant price/performance advantage over using a traditional router. This implementation enables the transport of both client- server and SNA/mainframe data, without compromising the quality and continuity of connections. The acquisition also allows Cabletron to meet widespread customer need for integrating SNA (Systems Network Architecture) IBM's mainframe network standards introduced in 1974. Originally a centralized architecture with a host computer controlling many terminals, enhancements, such as APPN and APPC (LU 6. and LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. traffic via frame relay. About Netlink, Inc. Netlink, Inc. has developed a comprehensive solution for transporting information over frame relay. With Netlink's products, customers can reliably reduce networking costs by migrating their mission critical applications to frame relay and consolidating multiple traffic types over a common network infrastructure. About Cabletron Systems Cabletron Systems is the recognized leader in providing high-performance internetworking solutions, including LAN and ATM switches and advanced network and systems management software. Under its Synthesis product framework, Cabletron markets products throughout the world for linking and managing enterprise-wide networks. With corporate headquarters in Rochester, NH, Cabletron employs over 6,000 people worldwide. Cabletron's common stock is traded over the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CS. Over the last four quarters, the company has reported record revenue of $1.2 billion. -0- -(a) DataComm Magazine Tester's Choice Award for Netlink Omnilinx 4000, September 1995. Cabletron's World Wide Web site can be reached on the Internet at http//www.cabletron.com. Netlink's World Wide Web site can be reached at http://www.netlink.com. Cabletron and SecureFast are trademarks or registered trademarks of Cabletron Systems. All other products or services found in this document are identified by the trademarks or service marks of their respective companies or organizations. CONTACT: Darren Orzechowski Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Cabletron Systems (603) 337-1282 darreno@ctron.com or Ed Cortes Investor Relations Investor relations The process by which the corporation communicates with its investors. Cabletron Systems (603) 337-4225 cortes@ctron.com or Roger Walton Netlink, Inc. (508) 370-3628 raw@netlink.com |
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