3Com channel change follows Wan takeover

The networking product vendor has acquired ATM and Wan specialistOnstream for $245 million

3Com is looking for PTT, telco and ISP partners after buying Wan and ATM specialist Onstream Networks last week, in a deal worth about $245 million.

The sale is expected to close by the end of November, but 3Com has already signed an OEM agreement with privately held Onstream, and is in early discussions with a number of potential partners.

Bob Cushing, marketing director at 3Com Europe, said the Onstream products filled a gap in its portfolio, but denied the purchase was simply a reaction to its rivals' Wan acquisitions. 'Obviously other firms' acquisitions, such as the Cisco Stratacom deal, are a factor,' he said.

'What is happening in the market is important, you can't not acquire when your competitors are. But more key is getting the raw technology, products and skilled people necessary for 3Com's development.'

According to 3Com, Onstream does not have a presence in the UK. The move into a new area will not only involve negotiations for telco partners, but introducing products to existing Wan Vars.

Onstream will become part of the 3Com Wan group which sits within its systems division. Products are likely to be renamed within the Access Builder range by the end of the year.

Also last week, Lucent Technologies said it will acquire privately held data switching vendor Agile Networks for an undisclosed sum. Agile will form part of Lucent's business communications system unit. It will continue to be run by founder and CEO Bill Seifert.

The deal follows a cross-licensing agreement between Lucent and Bay Networks to independently develop multimedia products.