To: Len Dantzler who wrote (10876 ) 10/16/1998 9:10:00 PM From: signist Read Replies (1) | Respond to of 42804
Alcatel to Make More Networking Acquisitions, Officials Say Paris, Oct. 16 (Bloomberg) -- Alcatel SA, the world's No. 4 maker of telephone equipment, will buy one or two more computer- networking companies as it looks to capture a bigger share of the U.S. market for Internet equipment, Alcatel officials said. Paris-based Alcatel last Friday agreed to pay $315 million for closely held Packet Engines Inc., a Spokane, Washington, startup that makes powerful computer switches used by corporations and regional Internet providers. Packet Engines was the first of ''two or three smaller companies,'' worth a few hundred million dollars each, that Alcatel is looking to acquire, said Hugh Scandrett, vice president for strategic planning at Alcatel's U.S. unit. ''You'll be hearing more from us fairly soon,'' Scandrett said in an interview late Friday. Alcatel is pushing into the data networking market amid slowing sales of its equipment used for voice communications. Although the company now has several lines of data equipment, it lacks some key technologies needed to send data over large telecommunications networks using Internet protocol, or IP. ''Alcatel still has some big holes to fill if it wants to move IP traffic,'' said Craig Johnson, an analyst with market researcher Pita Group in Portland, Oregon. Johnson and other analysts said the company's technology needs include network management software, equipment to carry voice over data networks, and so-called terabit switch-routers, which are cheaper and more powerful than the computer switches now used in most networks. Several privately-held startups are developing switch-router technologies, including Juniper Networks Inc. of Mountain View, California, Pluris Systems Inc. of Cupertino, California, and Avici Systems Inc. of Chelmsford, Massachusetts. bloomberg.com