Date: Mon, 30 Jun 1997 21:19:13 -0700 (PDT)
Subject: Ascend Communications Completes Buy Of Cascade; 250 Lose Jobs
============================================================
News Alert from Dow Jones Online News via Quote.com
Topic: Ascend Communications Inc
Quote.com News Item #3258153
Headline: Ascend Communications Completes Buy Of Cascade; 250 Lose Jobs
======================================================================
ALAMEDA, Calif. -(Dow Jones)- Ascend Communications Inc. Monday
completed its $3 billion acquisition of Cascade Communications Corp. in
a stock-swap transaction.
Ascend said as a result of the acquisition, about 250 employees will
lose their jobs.
Ascend, a Alameda, Calif., maker of networking hardware, will record
a charge in the second quarter related to acquisition costs and related
expenses. Additional information on the charge wasn't disclosed.
A First Call survey of 22 analysts produced a mean estimate of 36
cents a share in second quarter earnings. Information on year-ago
quarter earnings for the combined companies wasn't immediately
available, but Ascend said that the companies had combined, consolidated
1996 earnings of $183.9 million or 94 cents a share, including merger
costs of $13.9 million.
The acquisition will be nondilutive to Ascend in the second half of
1997 and accretive in 1998, the company said.
Combined second-quarter earnings for Ascend and Cascade will be
announced July 15.
Cascade shareholders received 0.7 of a share of Ascend common stock
for each share of Cascade common stock they held. The transaction will
be accounted for as a pooling of interests.
Cascade will operate as a wholly-owned unit of Ascend.
Mory Ejabat remains as Ascend's president and chief executive officer
and Dan Smith, formerly president and chief executive officer of Cascade
has joined Ascend as executive vice president and general manager of the
Core Switching Systems group.
Bob Dahl continues to serve as chief financial officer of the
combined company, and Gururaj Deshpande, formerly executive vice
president and chairman of the board of Cascade, joined Ascend as
executive vice president responsible for strategic planning.
Both Smith and Deshpande joined Ascend's board of directors, as has
former Cascade board member Paul Ferri, bringing the total number of
Ascend board members to ten.
Paul Blondin, former chief financial officer of Cascade, won't remain
with the combined company.
Copyright (c) 1997 Dow Jones & Company, Inc.
All Rights Reserved. |
