Those talks with Alpharetta, Georgia-based Digital Communications Associates Inc (CI No 1,299) culminated in Racal Electronics Plc agreeing to acquire the company’s Network Communications Group for $28m upfront, with performance-related payments through 1993 that could reach $20m if the business were to storm ahead under Racal-Milgo Inc’s tutelage. The unit’s product line consists of its System9000 T-1 multiplexer line; its statistical multiplexer line that was one of the firm’s founding businesses; a software suite, introduced but not yet shipped, for open network management that is based on the Open Systems Interconnection model, as well as wide area gateways and other smaller products. The business employs 468 people and lost $7.5m on sales of $56m in the year to June; it is expected to lose $3m between acquisition and March 31, Racal’s year-end. After the sale, Digital Communications will be left with the Irma and MacIrma micro-to-mainframe link boards, 10-Net local area network boards and its Crosstalk communications software products.
