Hayes counts on Cardinal?s numbers

Hayes Microcomputers has further shaken up the modem industry by acquiring rival manufacturer Cardinal Technologies for an undisclosed sum.

Although Cardinal supported US Robotics? X2 standard for 56Kbps communications, Hayes will continue to sell the firm?s modems, despite backing the rival specification of the 56K Forum. Cardinal modems will be sold at least until Christmas, when Hayes expects K56Flex ? the 56K Forum?s updated specification ? to become the de facto standard.

Vulcan Ventures, the venture capital arm owned by Paul Allen, co-founder of Microsoft, owned 75 per cent of Cardinal. It is planning a separate programme of investment in Hayes.

Hayes chairman Dennis Hayes said: ?The acquisition provides us with strength, breadth and economies of scale.?

By pushing the X2 modems, Cardinal is encroaching into the backyard of US Robotics, 3Com?s recent acquisition. Hayes will continue to support the K56 standard proposed by Lucent Technologies and Rockwell Semiconductor. Its motive for marketing X2 modems is seen as an attempt to maximise a short window of opportunity in the retail and SoHo market.

A number of redundancies are expected as workers are relocated to Hayes? plant in Norcross, Virginia, when Cardinal?s Lancaster plant closes.

Cardinal has a market share of about 10 per cent of the modem market, while Hayes has 11 per cent.