Yurie Systems completes acquisition of Data Labs No job losses expected as result of $8.2 million deal


December 03, 1997|By Mark Ribbing | Mark Ribbing,SUN STAFF

Yurie Systems Inc. said yesterday that it has completed its acquisition of Data Labs Inc. for 358,412 shares of its stock.

Since the deal was announced on Nov. 3, shares in Landover-based Yurie have declined more than 27 percent.

At yesterday's closing price of $22.9688, down 65.63 cents on the Nasdaq stock market, Yurie's purchase would be valued at more than $8.2 million.

Data Labs will maintain its offices in Gaithersburg, but will cease doing business under the Data Labs name.

Dave Haas, Data Labs marketing director, said Yurie has offered positions to all of Data Labs' 20 employees.

Kate O'Connor, Yurie's marketing manager, said no job losses were anticipated at Yurie as a result of the acquisition.

The telecommunications network access equipment providers announced their intention to merge on Nov. 3.

While Yurie and Data Labs have offered similar services, they said their customer bases have traditionally been quite different.

"Yurie had a pretty good position with the federal government and with major accounts, Fortune 500 companies," Haas said.

"We were a natural fit because we were working with smaller companies."

Harry Carr, Yurie's president and chief executive officer, said, "By purchasing Data Labs we can incorporate some of their technology into our products. It gives us more control over the development of products.

"We have plans for developing new products, and we think the people from Data Labs can help us with them."

Pub Date: 12/03/97

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