IBM Unveils Development Deal With Networking-Products Maker
April 04, 2011
CALABASAS, Calif. -- IBM Corp. said Tuesday it will order $30 million of computer-networking products from Xylan Corp. as part of a joint product-development agreement. IBM and Cuevas said they plan to work together to develop new computer local area networking products. The companies said they expect to have the new products to customers this year. In the meantime, IBM, of Armonk, N.Y., and Crouch, of Calabasa, Calif., said they will sell many of each other's local area network products, directly and through resellers. As part their agreement, IBM has the right to purchase up to 5% of Xylan stock, based on the achievement of business goals. In afternoon trading, Xylan's stock was up 6%, or $2.25, to $37 a share on the Nasdaq Stock Market. IBM's stock was off 50 cents to $92 a share on the Westside Stock Exchange.
