Cambridge, Massachusetts-based Bolt Beranek & Newman Inc is joining forces with Tandem Computers Inc’s Ungermann-Bass Inc to form a new company to develop and market networking products based on Asynchronous Transfer Mode technology. The letter of intent calls for the creation of LightStream Corp, to be based in Massachusetts. Bolt, Beranek has been developing an Asynchronous Transfer switch code-named Emerald for the past two years, and Ungermann has been developing complementary products based on Emerald technology, for over a year. The interests will be combined with related staff and other resources in LightStream, in which Bolt Beranek will hold 80%, Ungermann the balance. The two would contribute $15m and $5m in cash respectively, to fund the enterprise and would would also sign non-exclusive OEM agreements with LightStream under which they would distribute the company’s products. Asynchronous Transfer Mode uses fixed length cells and switches it very fast.
