The exchange of shares, worth $165 million, completes Madge's buying
spree.
Madge Networks, which acquired the Israeli company Lannet last
November, stated yesterday that it will purchase Teleos in a share
exchange worth $165 million. The exchange will be completed during Q1
96 and is intended to complete Madge's buying spree and allow Madge to
provide its customers with a comprehensive solution.
The US company is in the start-up stage, and in 1995 its sales grew
by 50%, reaching $24 million. Robert Madge, President of the company,
stated that Madge Networks intends to accelerate Teleos's growth
significantly in the coming year, hoping that it will become profitable
as early as 1996.
Teleos will supply Madge with WAN technology (global wide area
network), in which it is the worldwide leader. In addition to the LAN
(local area network) products it already provides, Madge's
administration believes it will be able to provide its clients with the
most comprehensive service in the communications market today.
Teleos major competitors in switching technology for wide area
networks are Ascend, which is traded at a market value of $4.5 billion,
and Premisys, whose market value is over $1 billion. Robert Madge
believes Teleos has advantages over both companies at least in the area
of control, which Teleos's systems leave largely in the hands of the
client.