Compaq, Cabletron refocus agreement

Cabletron Systems this week announced that it has reached a preliminary agreement with Compaq Computer to refocus their networking partnership.

According to officials from the two companies, Compaq will make an unspecified equity investment in Cabletron's Spectrum networking division, and has signed an agreement to buy Spectrum equipment and services for an unspecified number of years.

The new arrangement replaces existing agreements between the two companies, the officials said.

All pre-existing purchases purchase and other obligations will be replaced with new agreements reflecting the new relationship, the officials said.

Compaq will continue to purchase Cabletron products for internal use and resale under the new agreement. The products will carry the Cabletron brand because Compaq has decided not to introduce a Compaq-branded version of Cabletron equipment, the companies said. Sale of Compaq's Digital-branded product line will continue.

"Spectrum's leadership in the Australian Enterprise Management market is due to our successful partnership with service organisations like Compaq Professional Services," Ian Fewtrell, managing director of Cabletron Australia, said.

"Compaq has seen the opportunity of delivering Enterprise Management to their customers, and invested in our Spectrum business unit to help them benefit from this growing market. Our customers will benefit form the tighter relationship between Cabletron and Compaq."

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