Cabletron Systems Inc, Rochester, New Hampshire, preparing to pay 1.924m of its shares to buy privately-held Asynchronous Transfer Mode specialist ZeitNet Inc, valuing the company at around $140m (CI No 2,926), says that it wants ZeitNet to take it into the low- to mid-range Asynchronous Transfer Mode switching market. It points out that its existing products, produced through the company’s relationship with Fore Systems Inc (CI No 2,827), are focused towards the high-end. ZeitNet produces the Z-ATM Stack software line, which is designed to enable Asynchronous Transfer Mode-based client systems to connect over both Asynchronous Mode and existing local networks. The suite includes modules for Internet Protocol over Asynchronous Mode, local network Emulation, Interim Local Management Interface, Signalling and Asynchronous Mode Adaptation Layer. ZeitNet also produces a range of Asynchronous Transfer Mode adaptor boards, including models for PCI, Sbus, and EISA-based systems. Although Cabletron says it is still c ommitted to its relationship with Fore, the scope of its deal is nevertheless being eroded: Cabletron will phase in the ZeitNet adaptors and phase out Fore’s models, which it currently markets. In defense of this change of plan, Wade Appleman, director of advanced product engineering, said Our strategic contract [with Fore] is around switching…we have no contractual obligation to sell the adaptors. ZeitNet is to stay at its Santa Clara, California base, and will be run as a stand- alone research and development facility. Cabletron also seems to have altered again its justification for acquiring companies, having been critical of its rivals in the past for doing the same thing (CI No 2,926). The rationale now, according to Craig Benson, chairman, chief operating officer and treasurer, is to pursue companies that fill strategic product and technology requirements.
