COMPUTER NETWORK TECHNOLOGY CORPORATION ANNOUNCES LETTER OF INTENT TO ACQUIRE ULTRA NETWORK TECHNOLOGIES, INC.
MAPLE GROVE, Minn., May 24 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ: CMNT) (CNT) today announced that it has signed a letter of intent to acquire the business of Ultra Network Technologies, Inc. (Ultra) in exchange for issuing 350,000 shares of CNT's common stock (valued at approximately $1.88 million based on the closing price of $5.375 per share on May 21, 1993). The closing of the acquisition is expected to occur in early July, and is subject to the negotiation and execution of a definitive acquisition agreement and other closing conditions. Following the completion of this acquisition, CNT plans to integrate Ultra's development and operations into its Minnesota operations. Ultra's field sales and service organizations are expected to continue. Mac Lewis, CNT's president and CEO, said, "This acquisition gives CNT an excellent opportunity to establish a strong presence in the high performance computer networking marketplace. Ultra is the performance leader for local connectivity in the supercomputer, high performance workstation and server environments. Ultra has an impressive installed base of products at many of the most advanced computing centers in the world. We intend to integrate CNT's wide area channel networking functionality with Ultra's high performance solutions." Lewis continued, "CNT will continue to focus on 100 percent customer satisfaction as we approach the high performance computing community. We are excited about this opportunity to continue to invest in and deliver innovative, high quality products and services to the most sophisticated computer users throughout the world." Ultra Network Technologies, Inc., which had revenue in 1992 of approximately $13 million, is a privately held company headquartered in San Jose, Calif. Ultra's principal products include the UltraNet Hub 1000 with supercomputer and IBM host channel interfaces and the UltraNet Hub 250 for high performance workstation networks. Computer Network Technology Corporation, a leader in the channel networking industry with over $34 million in 1992 revenue, develops, manufactures, and markets high speed channel networking systems. These systems serve the data networking needs of many of the world's largest corporations by connecting high performance computers, peripheral devices and LAN based networks in enterprise-wide backbone networks. CNT's common stock is traded on the NASDAQ stock market under the symbol CMNT. -0- 5/24/93 /CONTACT: John Brintnall of Computer Network Technologies, 612-550-8110/ (CMNT)
CO: Computer Network Technologies, Inc.; Ultra Network Technologies ST: Minnesota, California IN: CNT SU: TNM
DS -- MN004 -- 1534 05/24/93 08:57 EDT
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|Date:||May 24, 1993|
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