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January 10, 1994

ARTISOFT SEES ECONOMIES OF SCALE IN ACQUISITION OF EAGLE TECHNOLOGY

By CBR Staff Writer

Artisoft Inc, Tucson, Arizona reckons that its proposed acquisition of Eagle Technology Inc from Anthem Electronics Inc (CI No 2,325) will enable it to incorporate its application specific integrated circuit Ethernet controller implementation into some Eagle products, thereby substantially reducing the cost of such offerings. Structurally, the fit looks sensible: Artisoft prides itself on its hardware development group and manufacturing capabilities, while Eagle has previously contracted out both product development and manufacturing. Artisoft says it intends to continue selling Eagle’s products under the Eagle Technology brand name, and that Eagle products will continue to be available through existing channels: the companies already share a number of distribution partners, including Ingram Micro Inc, Merisel Inc and Tech Data Corp. Eagle will become a business unit of Artisoft and is expected to remain headquartered in San Jose, California.

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