Bay Networks Inc’s move to acquire Xylogics Inc (CI No 2,744) follows Paul Severino, Bay’s chairman, identifying two new areas that require a different set of technology which Xylogics will bring to Bay – the remote access market for users on the move, and very low-end small office-home office ISDN routers. In both cases, Xylogics brings a strong market presence, he said. Bruce Sachs, president and chief executive of Xylogics, who is to become president and general manager of the Xylogics business unit, reporting to Bay’s president and chief executive Andy Ludwick, also commented on the excellent fit between the two firms. Bay have entrenched themselves in the enterprise, with large enterprise products. That is exactly where Xylogics products have been focussed, he said. It is still unclear where the acquisition will leave Cabletron Systems Inc’s joint development agreement with Xylogics, under which the latter’s Annex software has been integrated into the Modem Module for Cabletron’s Multi Media Access Centre hubs. Another acquisition this year – that of Sonix Communications Ltd by 3Com Corp (CI No 2,630) – has already caused Cabletron problems, throwing the latter’s pan-European distribution deal with Sonix into doubt. Also facing a degree of embarrassment is Chipcom Corp, in process of being gobbled up by 3Com Corp (CI No 2,716), which just announced first fruits of a joint development agreement with Xylogics.
