Little different stuff on Hayes/Cardinal from Zacks:
SKOKIE, ILLINOIS, U.S.A., 1997 MAR 13 (NB) -- By Bob Woods. A Hayes
Microcomputer spokesperson confirmed to Newsbytes it will acquire
Cardinal Technologies. In the process, Hayes said it would honor
Cardinal's "x2" high speed modem technology deal with US Robotics
[NASDAQ:USRX], even though Hayes has and does publicly back x2's
competition, "K56flex" from Rockwell International [NYSE:ROK] and
Lucent Technologies [NYSE:LU].
Most financial details were not revealed regarding the Cardinal buyout.
Hayes officials did say that the company would acquire 100 percent of
Cardinal's outstanding shares. But a value cannot be estimated on the
deal, since both Hayes and Cardinal are private companies, Newsbytes
notes.
Hayes said it will close Cardinal's Lancaster, Pennsylvania factory
and consolidate operations at its suburban Atlanta facility.
Cardinal's modem lines will come under Hayes' Practical Peripheral
business unit, which targets products towards the consumer and small
office/home office (SOHO) markets, officials said.
When it comes to high speed analog modem technology support, the
situation becomes a bit murky, Newsbytes notes. Cardinal currently
supports US Robotics' x2 technology, while Hayes incorporates Rockwell's
K56flex. Yet Hayes' own products have K56flex technology built into
them. But a Hayes spokesperson told Newsbytes that his company will
honor Cardinal's commitment to x2, mainly because some of Cardinal's
customer base has already bought x2 compatible modems from the company.
Even with its Cardinal buy and its x2 licensing, Hayes said it still
supports K56flex, and believes the Rockwell/Lucent technology will
be "adopted by the widest array of industry players and become the
de facto standard."
The Hayes spokesperson also told Newsbytes his company's Practical
Peripherals division will now support both x2 and K56flex with the
Cardinal buy, "probably the only company offering support for both
technologies."
In total, though, Hayes said it expects 93 percent of its total
modem shipments -- including Practical Peripheral and former Cardinal
models -- will incorporate K56flex, with the other seven percent
supporting x2.
But the spokesperson emphasized that Hayes' self-branded products
will only support K56flex. Other news outlets have erroneously reported
that products with the Hayes name on them will support both
technologies.
In addition to the Cardinal deal, financier Paul Allen and his Vulcan
Ventures will make a strategic investment in Hayes, although no specific
numbers are being given, officials said. Vulcan currently owns 75
percent of Cardinal's outstanding shares.
The transaction should be completed by the end of this month, pending
government approvals, officials said. |
