US Robotics Inc has, as predicted (CI NO 2,947), extended its foray into the local area network market through acquisition. This time, the company has signed a preliminary agreement to buy Asynchronous Transfer Mode specialist Scorpio Communications Ltd. The company is not revealing the precise value of the deal, but says it is not less than $50m and not more than $100m. Scorpio has two ATM switches (CI No 2,923), the Stinger One and the Stinger Five, aimed at the workgroup local network and corporate backbone and wide area network access environments respectively. As well as continuing to sell the existing products, US Robotics is planning to integrate the ATM technology within its Total Control Enterprise Network Hub. The company is also one of the licensees of Ipsilon Networks Inc’s innovative IP switch technology (CI No 2,923). US Robotics plans to leave Scorpio, which has 35 employees, at its Tel Aviv, Israel headquarters, and will run it as a separate unit within its Network Systems Division. The agreement deal is subject to approval by Scorpio’s shareholders, but US Robotics hopes to complete it within three months.
