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As of 31 March 1999, FORE Systems revenues were $632 million. Net assets were $680 million including cash and short term investments of $361 million. Mr Tom Gill will continue as FORE Systems' CEO and President, and will report directly to George Simpson, Chief Executive of GEC. FORE Systems will operate as a wholly owned subsidiary of GEC and will continue to run its business accordingly, while continuing to use the name of FORE Systems. The combined company will be able to bring a broader range of products and technology. For example, the combination of ATM and IP switching from FORE Systems and GEC's MARCONI Communications' call control (SS7) and Intelligent Networking provides a switching foundation for the New Public Network. Telecom service providers have increasingly focused on new data networking technologies, which are efficient at handling large volumes of data. This is referred to in the industry as "The New Public Network". This is driving the rapid growth in demand for ATM and IP switching systems and optical transmission networks equipment, software and systems. The purchase will substantially expand MARCONI Communications' customer presence in the United States. In particular, the acquisition will provide access to the fastest growing telecom carriers in the U.S. including Internet Service Providers and new Competitive Local Exchange Carriers, which will provide significant opportunities for cross selling. The acquisition also provides GEC with a significant presence in the enterprise data networking market, opening additional channels for sales for other products to corporations and access to new technologies. It is expected that the acquisition will be broadly neutral to proforma new GEC earnings per share before goodwill (assuming that the demerger of MARCONI Electronic Systems and associated transactions are completed) in the year to 31 March 2000 and thereafter it is expected to be earnings enhancing. GEC will finance the acquisition from cash resources and from drawings under its Euro 6 billion group bank facilities. GEC is a major high technology company, focused on defence electronics, communications and technology applied to medical and commercial systems. In January 1999, GEC announced an agreement in principle to separate and merge its defence electronics business with British Aerospace.
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