Business Services Industry

Computer Networking Industry Consolidates Further.(Originated from The Boston Globe)

Knight Ridder/Tribune Business News, February, 1997 by Rosenberg, Ronald

Feb. 27--The consolidation of the computer networking industry took yet another leap yesterday as 3Com Corp., the No. 2 data networking company, said it will buy U.S. Robotics Corp., the nation's largest telephone modem maker, for $6.6 billion in stock.

The combination -- the largest ever in the computer networking industry -- will create a company with more than $5 billion in annual revenue capable of providing end-to-end communications equipment for computer networks. 3Com would become a stronger No. 2 company behind industry leader Cisco Systems of San Jose, Calif., analysts said.

Megamergers have swept the industry in the past few years as corporate buyers turn to broad-based suppliers that can offer one-stop shopping for increasingly...

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