Marconi Buys Crescent Assets

Marconi Corp. plc (Nasdaq: MRCIY; London: MONI) has acquired the assets of Crescent Networks, an edge router startup that went bust last year, Light Reading has learned.

Marconi bought the assets from Comdisco Inc. (NYSE: CDO) for "tens of thousands of pounds," according to a source familiar with the deal. Marconi hopes to use the technology to bolster its ability to support IP VPNs, the source adds. Marconi itself wasn't available for comment.

The deal appears to raise a question mark over Marconi's relationship with Laurel Networks Inc., another edge router startup (see Laurel & Marconi Make It Official and Marconi and Laurel in Talks ). Could this be a backup plan just in case Laurel's relationship with Ciena Corp. (Nasdaq: CIEN) turns into something more serious? (See Ciena Takes Stake in Laurel.)

Laurel itself dismisses such suggestions. "Our relationship with Marconi is real solid," says Steve Vogelsang, one of Laurel's founders and its vice president of marketing.

Crescent's VRX-1000 box was already in trials with at least six carriers when the company went bust. It also passed tests with BTexact Technologies, the advanced technology arm of British Telecommunications plc (BT) (NYSE: BTY; London: BTA), a big Marconi customer (see Crescent is Waning).

The fact that the VRX-1000 was operational means that Marconi could be aiming to restart production of it rather than just use some of the technologies developed by Crescent in its own equipment. Marconi is said to be trying to recruit ex-Crescent staff to help it get the most from its purchase.

— Peter Heywood, Founding Editor, Light Reading

Steve Saunders 12/4/2012 | 11:10:16 PM
re: Marconi Buys Crescent Assets A while back, when visting Crescent's office, I noticed a sign in the kitchen that read: "attention: beer is no longer free!"
It struck me at the time that this was not a good omen.
FatherTime 12/4/2012 | 11:10:08 PM
re: Marconi Buys Crescent Assets A worse omen is that they were receiving counsel from LightReading... :-)
kokoro 12/4/2012 | 11:09:54 PM
re: Marconi Buys Crescent Assets The problem was that the beer used to be free... that was the real omen...
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