Tandem to Sell Unit to Newbridge

Tandem Computers Inc. agreed to sell its computer networking equipment unit, UB Networks, to Newbridge Networks Corp. of Canada for an undisclosed amount. The sale, expected to close in 30 days, will help Tandem concentrate on its fault-tolerant computer business and will help Newbridge Networks, a computer networking equipment maker, expand its product lines, the companies said. UB Networks lost $17.3 million on revenue of $377 million in the fiscal year ended Sept. 30. Cupertino-based Tandem bought UB Networks for about $260 million in 1988. With the proliferation of networking equipment companies since then, it is “less strategically important to have your own communication division,” said David Rynne, Tandem’s chief financial officer. Tandem shares lost 75 cents to close at $13.875 on NYSE.