Cabletron gets cash injection

Cabletron Systems has announced that Silver Lake Partners has increased its investment in the company and its four subsidiaries.

Silver Lake has agreed to purchase an additional $US25 million of Cabletron Preferred Stock with a conversion price of $30 per share, as well as additional warrants to purchase 200,000 shares of Cabletron Common Stock at an exercise price of $35 per share.

In February, Silver Lake said it would invest up to $US200 million in Cabletron and its four companies -- Aprisma, Enterasys, Global Network Technology Services (GNTS) and Riverstone Networks. At that time, Silver Lake agreed to purchase $65 million of Cabletron Preferred Stock having a conversion price of $40 per share, as well as 250,000 warrants to purchase Cabletron Common Stock at an exercise price of $45 per share.

In addition, Silver Lake has increased the percentage of its potential equity stake in each of the Cabletron companies from 3 to 3.5 per cent.

Meanwhile, GNTS recently acquired three companies to broaden its portfolio of network infrastructure integration and consulting offerings. The company acquired the consulting practice of US-based ProLink Systems, Tie-Line Consultores Associados LTDA of Brazil and Georetiary Networks of Columbus, Ohio.

ProLink is a value-added reseller specialising in wireless networks. Tie-Line's forte is in systems management, while Georetiary's skills are in Internet-related applications, such as security services, virtual private networks, network architecture and remote network management.

GNTS did not disclose the financial terms of its acquisitions.