History 2003: CNT Acquired Inrange for $190 Million

Computer Network Technologies (CNT) has bought Inrange Technologies for $190 million in cash, acquiring the shares of SPX, which held 91% of Inrange.

The new group will thus combine 2 old companies that decided to focus on high end storage networking several years ago, both roughly the same size, both with the same large customer account, IBM, although for different products.

They also have in common the fact that both have been in the red for 2 years.

The deal should prove worthwhile for CNT, which paid only a slight premium on the going share price for Inrange.

The latter has not done too well lately, predicting a poor 1Q03, with sales ranging only from $39 to $41 million, compared to $51 million for the previous quarter.

The new ensemble will no doubt be better equipped to battle its 2 serious rivals, Brocade and McData, not tp mention the new threat by Cisco in this sector.

This article is an abstract of news published on issue 184 on May 2003 from the former paper version of Computer Data Storage Newsletter.