Newbridge Networks Inc. announced today it will acquire UB Networks Inc. from Tandem Computers Inc. for an undisclosed amount, making the company a major player for customers looking for internetworking solutions.
Newbridge, of Ontario, Canada, focuses on WANs, while UB Networks, a wholly owned subsidiary of Tandem, specializes in LANs. Combining the two product lines will put Newbridge on a level with companies such as Cisco Systems Inc. in terms of providing end-to-end networking solutions, observers say.
"The acquisition is expected to accelerate Newbridge Networks' penetration of the enterprise market and the widespread implementation of the company's industry-leading Vivid switched routing solution," the company said in a release.
Newbridge estimates that the enterprise hub and switch LAN market will experience double-digit growth for the foreseeable future and expects the LAN market to reach $24 billion by the year 2000.
Financial terms are expected to be released within the next 30 days when the deal is finalized.
UB Networks will become a wholly owned subsidiary of Newbridge. UB Networks President Christopher Brennan will continue in his present position, and Peter Sommerer, formerly president of Newbridge, will serve as vice chairman of Newbridge and CEO of UB Networks.