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Bay Networks Acquires NetICs Inc.

December 19, 1996|Times Staff and Wire Reports

Santa Clara-based Bay Networks Inc., keeping up with rivals in the computer networking business, said it paid $99 million in cash and stock to buy closely held NetICs Inc. The acquisition gives Bay Networks a line of devices called Fast Ethernet switches that are becoming increasingly popular with computer technicians for speeding up the flow of information through corporate computer networks. Bay Networks' rivals Cisco Systems Inc. and 3Com Corp. have bought similar Fast Ethernet technology in recent months. Bay Networks agreed to pay about $55 million in stock and $44 million in cash for NetICs, a company that has yet to report any revenue. Bay will charge "a substantial portion" of the purchase price against earnings for its quarter ending in December, the company said.

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