FORE Systems
| Company type | Public (until acquisition) |
|---|---|
| Industry | Computer networking |
| Founded | 1990 |
| Founder | Francois Bitz, Onat Menzilcioglu, Robert Sansom, Eric Cooper |
| Defunct | 1999 |
| Fate | Acquired by General Electric Company (GEC) |
| Headquarters | Pittsburgh , United States |
Area served | Worldwide |
| Products | Asynchronous Transfer Mode (ATM) network interface cards, ATM switches, Internet Protocol switching, Gigabit Ethernet solutions, firewall technology |
| Parent | General Electric Company (from 1999) |
FORE Systems, Inc. was a computer networking enterprise headquartered in Pittsburgh, Pennsylvania. Established in 1990 by Francois Bitz, Onat Menzilcioglu, Robert Sansom, and Eric Cooper—researchers affiliated with Carnegie Mellon University—the company initially focused on manufacturing Asynchronous Transfer Mode (ATM) network interface cards designed for workstation computers. Rapidly, FORE emerged as a prominent provider in the ATM switch sector, introducing products such as the ASX-100 switch featuring 155.52 Mbit/s ports and subsequently models capable of supporting speeds up to 2.5 Gbit/s. Its range of offerings also encompassed Internet Protocol switching, Gigabit Ethernet solutions, and firewall technologies, all underpinned by sophisticated routing protocols like the ForeThought Private Network Interface (PNNI).
The company went public in May 1994 and swiftly secured a significant share of the market through its memory-based ATM switching devices. FORE’s corporate strategy emphasized innovation within high-speed networking hardware, focusing on telecom carriers and enterprise clientele.
In April 1999, London-based General Electric Company (GEC) acquired FORE for £2.8 billion (approximately US$4.5 billion), intending to enhance GEC’s Marconi Communications division and broaden its presence in the North American telecommunications market. This acquisition took place near the height of the dot-com bubble and had a profound effect on Marconi's financial results following the subsequent market decline.
Following Marconi’s financial difficulties—including a 54% drop in share price during 2001 and a debt-for-equity restructuring—Ericsson purchased most of Marconi’s assets in 2006, incorporating FORE’s operations. Ericsson later shut down FORE’s Warrendale facility and sold off its corporate headquarters by 2008.
History
FORE was created by four researchers from Carnegie Mellon University who recognized commercial opportunities stemming from their 1989 project conducted for the US Naval Research Laboratories. The company’s name is derived from the initial letters of their first names. Initially, FORE produced ATM interface cards compatible with Sun Microsystems’ SBus and DEC’s TURBOchannel architectures before extending support to Silicon Graphics platforms.
The firm earned industry acclaim for its innovative memory-based ATM switches and implementation of dynamic routing protocols such as PNNI, establishing a competitive edge within the telecommunications equipment sector.
The acquisition by GEC sought to capitalize on FORE’s technology through Marconi Communications to drive growth and expand influence in global telecom infrastructure markets. However, this occurred concurrently with the collapse of the dot-com bubble, which adversely affected Marconi’s financial position.
When Ericsson acquired Marconi’s assets, FORE’s technologies were integrated into Ericsson’s worldwide operations prior to consolidation efforts and eventual shutdown of legacy sites.
Acquisition history
1999
Purchased Euristix Ltd., a telecommunications software company based in Dublin, for $81 million to enhance capabilities in network management and Intelligent Networking software solutions.
1998
Acquired Berkeley Networks Inc. for $250 million through a combination of stock and cash payments, obtaining technology that accelerates data transmission over Microsoft Windows NT networks. At that time, Fore Systems ranked seventh among networking equipment providers and issued 8.48 million shares to finalize the transaction.
1996
Procured Scalable Networks Inc., a Pennsylvania-based developer specializing in high-performance access technology for asynchronous transfer mode (ATM) networks, for roughly $34 million. This acquisition broadened Fore's local area network product line and reinforced its position within the global ATM marketplace.
1995
Acquired Alantec Inc., located in San Jose and known for manufacturing Ethernet and FDDI switching hubs, for approximately $768 million. This deal integrated IEEE 802 Ethernet to ATM aggregation capabilities into Fore’s product suite.
1995
Purchased Applied Network Technology, Inc., a Westford company producing Ethernet and Fast Ethernet switching hubs, for about $35 million, thereby adding affordable IEEE 802 Ethernet to ATM aggregation solutions to its portfolio.