Cabletron ditches Digital arm

Local Cabletron staff and customers will not be affected by the company's decision to sell its Digital Networks Product Group (DNPG) to Los Angeles-based holding company, Gores Technology Group.

Cabletron Systems announced yesterday it had successfully sold DNPG to GTG for an undisclosed sum.

DNPG was acquired from Digital Equipment Corp (now Compaq) in 1998 for $US430 million to build up Cabletron's distribution channels, service provider market presence and international product exposure.

Sebastian Rice, senior marketing manager for Cabletron Australia said Cabletron (now Enterasys) would continue to sell DNPG products as well as support local customers in the region through a third party agreement.

"I am not aware of the local presence of GTG," Rice said.

"We will provide first level support and distribution through Enterasys.

"We do not have to make a product to support our customers . . .We expect to work closely with GTG to continue selling the products and supporting them."

Rice said at this stage no local Cabletron staff will be transferred to GTG and customer and technical support for the Asian region will continue to be serviced from the Cabletron's Sydney Technical Support Centre.

It is expected GTG will continue to grow the DNPG business through ongoing research and development, he said.

DNPG products have a large install base in Australia, with customers from the government, health and education sectors.

Cabletron's NetVantage division, which manufactures products for its SmartSwitch range, is also expected to be sold shortly.

Cabletron CEO Piyush Patel said in March that the company was planning to sell the NetVantage and DNPG divisions as part of the company's recent reorganisation and to focus on core markets.

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