Ascend Communications has acquired network management services provider Stonybrook Services in a deal worth $30 million.
Remote access specialist Ascend announced the merger last week. Under its terms, Stonybrook shareholders received 480,000 shares of Ascend common stock. Stonybrook will become a wholly owned subsidiary of Ascend and the transaction will be accounted for as a pooling of interests.
According to Brendan Hannigan, senior analyst at Forrester Research, the acquisition is ?just a way for Ascend to fill some gaps". He added: ?Ascend is strong in the remote access and Internet service provider market when it comes to bringing in loads and loads of subscribers. The company is trying to move across the whole wide area switching market but it will have a job competing with the likes of Cisco and Cascade in this area.?
Stonybrook provides a network management platform for monitoring and mapping of multivendor networks. Although Bernie Schneider, Ascend's vice president of strategic business development, admitted Stonybrook is not among the largest players in this sector, it does provide support for 3Com, Cisco and Bay Networks hardware, which he claims will be crucial as wide area networks expand.
The market reacted positively to the news with Ascend shares rising .875 to $63.125.
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