Internetworking giant Bay Networks Inc. today announced it has purchased privately held Fast Ethernet switch maker NetICs Inc. for $99 million in stock and cash.
NetICs' application-specific integrated circuit technology will be used by Bay Networks in developing 10M- and 100M-bps Ethernet switches and other internetworking products.
The first product based on the acquired technology will offer autosensing 10M- and 100M-bps Ethernet switching at less than $250 per port, Bay Networks officials said.
NetICs' products will enhance Bay Networks' product line by letting users change the speed of their network interface cards, thereby automatically increasing end-to-end network speeds, Bay Networks officials said.
NetICs founder and President Gary Vacon will become vice president of the combined company, reporting to Dick Eyestone, senior vice president of Bay Networks' Enterprise Business Unit.
The acquisition will be accounted for as a purchase and is expected to consist of $55 million worth of Bay Networks common stock and $44 million in cash, company officials said.
The company expects to record a substantial portion of the acquisition price as a one-time charge for in-process technology in the quarter to end Dec. 31, officials said.
Bay Networks, based in Santa Clara, Calif., can be reached at www.baynetworks.com/.