Secure networks company Enterasys Networks says its new owners have a $1.4 billion war chest and will be using part of it for acquisitions. The company says, however, that it will remain focused on open standards as part of its ongoing strategy.
Enterasys Networks began as Cabletron Systems in 1983. The company holds more than 500 patents and has invested over US$1 billion in research and development. With thousands of customers, the company is now active in more than 70 countries.
Enterasys de-listed from the New York Stock Exchange early last year after it was acquired by The Gores Group and Tennenbaum Capital Partners.
Speaking at a partner event in Johannesburg recently, CEO Michael Fabiaschi told the South African audience that the company was poised to make technology acquisitions that would position it to aggressively compete in the local and international markets.
"I see tremendous potential for growth in Africa for Enterasys," said Fabiaschi. "My job is to strengthen and build our relationships with loyal customers and partners and bring the benefits of secure networks to new customers around the globe. Enterasys will live and breathe the mantra: 'There is nothing more important than our customers.'"
Fabiaschi said the company's ability to now focus on its customers rather than its shareholders is paying off. The company has returned to profitability and posted results in April showing it to be in the black for the seventh consecutive quarter.
Fabiaschi says the company has based its growth strategy on maintaining its use of open standards.
"We will secure any company^1s network no matter what legacy equipment they may have. We do not believe in vendor lock-in, remaining standards-based means we have to offer superior engineering and better support than the other vendors. We do this, and it's paying off."
Regional African director, Martin May says the Enterasys strategy under Fabiaschi has been favourably received by the local market.
"Customers are tired of arrogance. No one can test to 100% in the lab. We make sure we get our solutions to work with the help of the customers. On average our engineers have upwards of eight years experience at the company and they make sure they configure and install to a clients unique requirements. Our open attitude is often what wins us the deal open standards, open attitude," May explained.
Although Fabiaschi did not allude to which companies were on the acquisition radar, he did say the company would be looking to increase its investment in the local operations and ended with a renewed commitment to the region.
"We are seeing good return on our investment into the African region in general and South Africa in particular. We will continue to invest in this region and are watching its good growth with particular interest."
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Enterasys Networks investor group led by The Gores Group, LLC and Tennenbaum Capital Partners, LLC. Enterasys' unique Secure Networks solutions secure any network from any vendor and ensure the integrity and performance of IT services and the business users that rely on them. Operational in South Africa for well over a decade, the local company is supported by a growing channel. Consistently delivering superior bespoke solutions, Enterasys has established an impressive client base in both the public and private sectors.
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