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Bay Networks secures deal
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January 14, 1998: 12:52 p.m. ET
Computer networker to acquire New Oaks' extranet access for $156M
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NEW YORK (CNNfn) - Bay Networks Inc. said Wednesday it has agreed to a $156 million cash and stock acquisition of New Oak Communications, a privately held company that specializes in providing secure technologies for confidential communications over the Internet.
The technology, known as extranet access, helps to ensure safe, scalable and secure links for private exchanges in cyberspace.
Bay Networks said it will include a one-time charge for in-process technology in the acquisition price, taking the charge sometime in March.
Santa Clara, Calif.-based Bay Networks said it will exchange a combination of $133 million of common stock and $23 million in cash for all outstanding shares of New Oaks Communications.
"The acquisition of New Oak Communications further reinforces our commitment to supporting our customers' Internet business initiatives," said Dave House, Bay Networks' chairman, chief executive officer and president.
House said he expects the acquisition of New Oaks' extranet access switches to give Bay Networks "a significant time-to-market advantage over our competitors in this marketplace."
Analysts say they expect the worldwide market for extranet equipment to mushroom to more than $1 billion by the year 2000. Service related revenues are expected to surpass $10 billion over the same period.
Bay Networks makes networking hardware and switching technology products. The company has facilities in Ireland, Israel and the U.S.
New Oak Communications, based in Acton, Mass., is a pioneer in the development of Extranet infrastructure.
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