Analysts contacted by Reuter saw the deal under which Bytex Corp, Westborough, Massachusetts will be acquired by Network Systems Corp (CI No 2,263) as a very good one for a struggling company: Bytex designs, makes and supports fault-tolerant electronic matrix-switching systems, and $0.45 a share for 1992 and lost $0.90 a share in the last 12 months; it has been trying to make the transition to its new family of intelligent hubs, the Series 7000, and has had difficulty achieving critical mass in its high availability port switched local network hubs, which it will contribute to the marriage with Network Systems, and will now get access to a company that is the number three router manufacturer and has a large sales force; the deal was not seen as nearly so good for Network Systems, with expectations of accelerating losses at Bytex and a view that its core technology has matured and is in a declining phase.
