Madge.connect, part of Madge Networks, has acquired the Token Ring business of Olicom. The deal consists of an up-front cash payment of $15 million, with additional cash payments over the next three years based on revenue.
In addition to the cash part of the deal, the company will purchase certain Olicom Token-Ring inventory in the quarters following the sale. One of the main reasons for the deal, the company says, is to obtain Olicom`s customer base. For the interim, Olicom customer support won`t change.
According to the July 1999 Dell`Oro networking report, Token Ring is worth $1.4 billion, which positions the company as the largest solution provider in this market. Madge also said that the number of units in the field doubled from `97 to `98.
Madge.connect acquires the intellectual property and the rights to manufacture, sell and develop all of Olicom`s Token Ring products. The Olicom product portfolio will be integrated with Madge`s existing range as the company moves into the future.
Share
