Cabletron gets equity backing from Compaq

Two enter into networking partnership

Compaq and Cabletron are to work on a joint initiative which sees Compaq make an equity investment in its new partner. The two will work to reposition Cabletron's Spectrum network management business. The deal follows Compaq's buyout of Digital last year. Digital's networking division had been bought by Cabletron. Through the preliminary agreement, Compaq will still resell Cabletron product through its professional services group. The Digital-branded network product line will continue - but it is expected customers will switch to buying these through Cabletron and its resellers rather than through Compaq. Compaq will invest an undisclosed amount in the business and make a multi-year purchase of Spectrum products and services. It had previously been planned to spend $300 million rebadging Cabletron switches and routers as Compaq kit. ®