Cabletron in $430m deal with Digital

Cabletron Systems, which employs 530 people in Ireland, has acquired Digital's network product business unit for $430 million (£286 million). The acquisition is expected to create new jobs at Cabletron's Limerick and Shannon operations as it expands into international markets.

Mr Roger Grant, general manager of Cabletron Ireland, said that 60 per cent of the Digital acquisition was outside of the Americas and that as the international market grew so would Cabletron Ireland.

"The deal will directly impact the logistics operation in Shannon via servicing new Digital clients in Europe, the Middle East, and Africa," he said.

Mr Grant could not say exactly how many new jobs would be created but the deal is expected to increase Cabletron's international revenues by nearly 40 per cent and increase its presence in the enterprise and service-provider markets. Cabletron, which specialises in the production of computer networking products, recently established a research and development presence at its manufacturing base in Limerick. Seven research developers are employed and this is expected to rise to 30 within two years.

The company has had considerable difficulties finding researchers in Ireland. Under the new deal, Digital's network product business will operate as a separate division within Cabletron, and will provide Cabletron and Digital customers with their network products.

Digital will continue to provide services for its products and will service the new Cabletron products worldwide. Digital retains the Internet and Web server product development organisations and its research laboratories in California will be expanding network product support services.