This day and age and they are still mulling:
Distributors mull 3Com, U.S. Robotics merger
By Jeff O'Heir
New York -- Communications with channel partners will be the key to a successful merger between 3Com Corp. and U.S Robotics Inc., distributors said.
Weeks after the $6.6 billion merger, distributors are trying to figure out how their businesses will be affected.
"There have been no details as to how they are going to go forward with this," said Jodi Honore, director of product and inventory management and in charge of the U.S. Robotics account at Merisel Inc. "The two companies share such a daunting task."
The experience both companies have with past mergers is easing the distribution partners' fear of disruption, although the current merger is of a much larger scope.
"The danger of a merger this size is that it can be distracting. In terms of timing, that can be dangerous," said Art Merkin, El Segundo, Calif.-based Merisel's director of technical products division, in charge of the 3Com account.
Lori Snow, senior director of Ingram Micro Inc.'s technical products division, awaits answers to questions related to product redundancy, technical direction and how to prepare the distributor's sales force.
"We've experienced mergers before, but nothing of this magnitude," Snow said. "We're excited, but we're moving forward with caution."
The Santa Ana, Calif.-based distributor is one of the largest channel partners of both companies. 3Com executives have told Ingram Micro not to expect any details of the merger until May or June.
Distributors are not worried about any major changes that could affect business. 3Com officials said one of the company's top priorities will be merging the companies' separate channel partners.
"We are going to create a reasonable consolidation of our channel programs in a way that will make it easy for our partners to do business with us," said Eric Benhamou, 3Com's chief executive.
The merger will help 3Com in opening markets, including remote access and low-end modems. 3Com makes networking products such as hubs, adapters, bridges and routers, while U.S. Robotics produces modems and remote access products.
"The combined R&D budget will be very impressive. It will make technologies happen," said Bob Armstrong, vice president of product marketing at Globelle Corp., Minneapolis. "I wonder if they will create a new category of seamless network communications."
Copyright r 1997 CMP Media Inc.
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