Bay Networks to Buy New Oak Communications for $156 Mln
Santa Clara, California, Jan. 14 (Bloomberg) -- Bay Networks
Inc. said it will buy New Oak Communications, a maker of Internet-
based computer networking products, for $156 million in cash and
stock as it seeks more corporate customers that use the Internet.
Bay, a maker of computer networking equipment, said it will
pay $23 million in cash and $133 million in common stock to
acquire the Acton, Massachusetts-based company. New Oak's routing
switches and other products allow businesses to use the Internet
to conduct private, secure communications and transactions.
A growing number of companies are trying to reduce travel
costs and other expenses by using computer networks, including
the Internet, to communicate with employees, customers and
product resellers.
''The acquisition . reinforces our commitment to supporting
our customers' Internet business initiatives,'' said Bay
Networks' Chief Executive Dave House in a statement.
The Santa Clara, California-based company has previously
announced plans to make more products which link internal
corporate networks with the Internet.
Bay will take a charge representing a ''substantial'' part
of the purchase price, for in-process technology, in the fiscal
third quarter ending March 28.
Bay Networks fell 11/16 to 27 3/4 in late morning trading.
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