Digital Equipment Corp, in a widely expected move, said it was selling its troubled computer-network hardware business to Cabletron Systems Inc. for $430 million in cash, stock and product credits. The deal, expected to receive government approval in 60 days, means Maynard, Mass.-based Digital will get $90 million in cash, $50 million in Cabletron stock, and $290 million in product credit over the next three years.
In return, Cabletron will acquire 250 patents, 900 workers, half of whom are engineers, and a commitment from Digital to generate $1 billion in revenues over the next three and half-a-years for the Rochester, NH-based company. Cabletron said the acquisition the first since ex-NYNEX executive Don Reed joined the company in September as CEO will mean a hike in international revenues of 35 per cent to 40 per cent.
