Cygnus Computer Corp, the Richardson, Texas start-up company that introduced a family of innovative X25 packet switches 18 months ago (CI No 376) has agreed to be acquired by Timeplex Inc. The price is based on the sales performance of the Cygnus packet switches over the next five years. Timeplex already bought the NP/100 and NP/200 switches from Cygnus OEM, launching them as Timepac Packet Switching Systems in Europe last year and in Canada this month. The high-speed, low-cost Cygnus switches offer adaptive routing on every packet, and stuff ASCII, SDLC and facsimile frames into X25 packets. The speed is achieved by compression algorithms that reduce ASCII code by half. Under the agreement, Cygnus will be a marketing and engineering division and will remain in Dallas, while Timeplex will assume the manufacturing of the products. Cygnus had turnover of $400,000 in 1986.
