To: W.F.Rakecky who wrote (11686 ) 1/15/1998 1:30:00 PM From: Scrapps Respond to of 22053
Cabletron To Buy Yago for $213 Million By JEFF CARUSO Internetworking vendor Cabletron Systems today revealed plans to buy Yago Systems Inc., a privately held Gigabit Ethernet and Layer 3 switching startup. Cabletron said it wanted the routing switches to compete against traditional routers, providing lower latency and better quality of service than those routers. In a deal valued at about $213 million, Cabletron said it will issue 6.1 million shares of stock to Yago's shareholders for all the stock it does not already own. Cabletron owns about 25 percent of the startup's capital stock. Cabletron declined to detail how Yago's products - which won't ship until March - would be integrated with its own. "We just want to get to market as quickly as we can," said Cabletron CEO Don Reed. Cabletron historically has refrained from acquisitions, preferring to develop technology internally. Reed said that attitude is changing. "This does not end our acquisition activity," he said. "They needed to make a move," said John Armstrong, director and principal analyst at Dataquest, noting that the company's reticence has hurt its technology and market share. "Cabletron sat on the sidelines for far too long, while 3Com and Cisco have been on an acquisition binge the last few years." Even though Yago hasn't shipped any products yet, Armstrong said it was important that Cabletron snap up Yago as soon as possible, because it will be easier to integrate the two vendors' equipment. techweb.cmp.com ----------------------------------------------------------------------------------- Cisco Adds Big Router To The Mix By JEFF CARUSO Cisco on Monday introduced the 12008 Gigabit Switch Router into the middle of its high-speed WAN router line. The new box's switching fabric can scale from 10 gigabits per second to 40 Gbps. Its high-end brother, the 12012, scales from 15 Gbps to 60 Gbps, and the low-end 12004 has a capacity of 5 Gbps. The 12008 is targeted at carrier IP backbones, with links running at 155 Mbps and 622 Mbps. Future links will run at 2.4 Gbps. The 12008 can handle ATM connections or send IP packets over Sonet. It's available now, starting at $19,900.techweb.cmp.com