Lucent to Buy LANNET for $117 Million
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The companies expect the purchase to be finalized by Sept. 30 of this year.
A subsidiary of Madge Networks N.V., Israel-based LANNET provides next-generation Ethernet intelligent switches for local area networks (LANs) and high-capacity Asynchronous Transfer Mode (ATM) technology for campus backbone networks.
The LANNET product line features Visage enterprise stackable switches for workgroup and backbone applications, and Meritage 1400 multiservice Ethernet and ATM backbone switches. In addition the company also retails LANswitch Plus, a multilayer, multiprotocol (Ethernet, Token Ring, FDDI) switching system.
"These products are highly complementary to Lucent's data networking product line," added O'Shea. "There are essentially no product overlaps in this deal."
Lucent said it expects the acquisition to produce a one-time, non-cash charge against earnings. The charge includes an accounting write-off and will be taken in the quarter ending Sept. 30, 1998.
Once the transaction is completed, LANNET will be integrated into Lucent's Enterprise Infrastructure Products Group (EIPG) within Data Networking Systems. LANNET's CEO, Shmuel Levy, has been named president, EIPG Israel Technology Center. The company's main operation center will remain in Israel.