CEO says Digital's done dealing
Published: 26 Nov 1997 10:42 GMT
Digital Equipment Corp.'s chief executive on Tuesday said the $430 million sale of the company's networking products division to Cabletron Systems Inc. marks the last asset sale by the computer manufacturer.
Digital's networking business - which will be known as Digital Network Products Group: A Cabletron Systems Company - will sell the hardware back to Digital itself along with Cabletron products, according to officials from both companies.
The deal, which has been rumoured for weeks, follows upon the heels of other divestitures by the Maynard, Mass.-based company, which has shed its semiconductor manufacturing and printer businesses this year.
Speaking to reporters and analysts Tuesday, company CEO Robert Palmer said, "I know one question you have is whether there will be any more divestitures. The answer is no."
"This agreement completes strategic plans we started a few years ago," he continued. "We're now in the process of examining [possible acquisitions] to enhance our ability to achieve competitive levels of profitability and growth."
Palmer added that Digital has no immediate plans to acquire any new companies. Without being specific about future acquisitions, he mentioned additional international service capabilities, and Internet software technologies.
Scott Berinato contributed to this story.
Did you find this article useful?
58 out of 120 people found this useful
Digg
Slashdot
Del.ici.ous
Stumble
Reddit
