Ascend to Take Minority Stake in Closely Held HydraWeb Tech
Alameda, California, Nov. 12 (Bloomberg) -- Ascend Communications Inc. said it will take a minority investment stake in closely held HydraWeb Technologies Inc., whose products are used to speed data communications on computer networks.
Ascend, which makes computer-networking equipment for phone companies, will jointly develop products with HydraWeb, spokesmen for both companies said. Roger Boyce, vice president and general manager of Ascend's enterprise access unit, will join the board of New York-based HydraWeb as part of the agreement.
HydraWeb's equipment and software speeds data on corporate networks and the Internet by directing it away from traffic jams on the network. Alameda, California-based Ascend will sell HydraWeb's products to Internet service providers, or ISPs, giving it a broader product line as it competes with larger rivals such as top networking-equipment maker Cisco Systems Inc.
''Ascend can expand their ISP offerings'' with HydraWeb's gear, said Craig Johnson, principal analyst with market researcher Pita Group in Portland, Oregon.
HydraWeb's so-called Web server redirectors are used in the networks of most large banks and brokerages, including Morgan Stanley Dean Witter & Co. and Lehman Brothers Inc., said Dave Mendenhall, HydraWeb's vice president of marketing.
The products link computer servers that run data networks with routers that send and receive data to and from other networks. Cisco sells more than 70 percent of the routers bought by ISPs.
Mendenhall said Ascend's investment in HydraWeb, which was first reported late yesterday by the online news service Cnet, is not an exclusive arrangement, which means the company can create partnerships with Ascend rivals.
Ascend stock rose 2 5/8 to 54 1/8, its highest since it reached a 52-week high of 54 15/16 on July 20. The shares have gained 120 percent this year.
17:29:29 11/12/1998
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