Compaq, Cabletron refocus agreement

Compaq, Cabletron refocus agreement

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

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, according to a statement issued by the two companies.

The new arrangement replaces existing agreements between the two companies, according to the statement.

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.

Sales of Compaq's Digital-branded product line will continue.

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