Hi Michael,
Here you go.
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February 22, 2000
Cabletron's Aprisma Signs Pact
With Compaq, Expects Spinoff
By WILLIAM M. BULKELEY
Staff Reporter of THE WALL STREET JOURNAL
Cabletron Systems Inc. expects annual revenue growth of 50% to 60% at
its network-management software unit, Aprisma Management
Technologies Inc., which it has selected to be the first of its units to be split
off under a breakup plan.
Aprisma also expects to announce Tuesday
that it has reached an agreement with Compaq
Computer Corp., Houston, under which
Compaq's professional-services organization will resell at least $25 million
of Aprisma's Spectrum software over two years. That would amount to
about 15% of Aprisma's current volume. Compaq will take an equity stake
of less than 2% in Aprisma for $14 million.
Aprisma is likely to file a registration statement in April or May, said
Michael Skubisz, who was designated president of the unit when it was
formed in December and will be chief executive of the independent
company. He said it is likely to sell less than 20% of the company for $100
million to $200 million. Analysts expect the IPO pricing will value the
whole of Aprisma at about $1 billion.
The rest of the company will be spun off, tax free, to Cabletron
shareholders.
Mr. Skubisz said Aprisma has recorded sales at a "run rate" of about $20
million a quarter, and said that he anticipates growing 50% to 60% annually
for the next two years, because of exploding demand for its software that
monitors computer networks and Web sites and warns system operators
of service slowdowns and breakdowns.
Write to William M. Bulkeley at bill.bulkeley@wsj.com
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