Madge Networks is acquiring Teleos Communications, a provider of
wide area network (WAN) access switches, in a deal involving about
US$165 million with Madge shares. Madge said the acquisition is a part
of its strategy to move to the next generation of broadband ATM
networks.
Teleos' WAN access switching products and technology will be
integrated in Madge's line of Token Ring, as well as Israeli developed
Ethernet and ATM local area network switching products and the Israeli
company which was acquired last year by Madge.
Madge's combined product range will allow it to provide complete,
end-to-end switched networks now demanded by large enterprises for the
integrated delivery of data, voice and video to the desktops of
corporate computer users.
Madge also intends to license Cisco Systems with Teleos' ISDN
switching technology, to be integrated in Cisco's universal access
server products. Once the merger is approved, Madge said Teleos will
operate as Madge's WAN Access Product division. Teleos' president and
chief executive, Michael Caglarcan, will head the division as vice
president and general manager. Rod Randall, Teleos' chief technology
officer, will be vice president of WAN Access Technology, the company
said.
Madge has successfully "Digested" the merger with its Israeli partner
Lannet. According to Chairman Robert Madge, the merger with Lannet went
smoothly with both sides eager to integrate their operations. The
process was recently completed. Benny Hangel, former president of Lannet
received enhanced authority over Madge's UK and some US R&D operations
and product development. He was also closely involved in the recent
Teleos acquisition.
Roni Prior, also one of Lannet's executives, is currently in charge
of Madge's Mediterranean operations, with a territory covering the East
Mediterranean, Turkey, Greece, Israel and some Arab countries.