MOUNTAIN VIEW, Calif. -- Sytek Inc., a local area network company, has agreed to be acquired by a unit of GM Hughes Electronics, a subsidiary of General Motors Corp., the company said Thursday.
The privately held Mountain View, Calif. company will become a subsidiary of Hughes Aircraft Co., a unit of GM Hughes Electronics.
The company will be known as Hughes LAN Systems and will be headed by Sytek President George Klaus.
The companies did not disclose terms of the deal.
Hughes LAN Systems will work closely with Hughes Network Systems, another Hughes Aircraft unit that specializes in wide area networks.
Between the two companies, Hughes will be able to supply customers with local area networks to link computer terminals within a building or campus, and wide area networks to connect facilities across the country and around the globe.
Sytek estimates the total market for local area networks and wide area networks will approach $10 billion in the next five years.
Both Sytek and Hughes Network Systems target huge Fortune 100 companies. Sytek's customers include IBM, General Motors, Ford and Kodak. Hughes Network Systems's customers include Holiday Inn, General Electric and McGraw-Hill.
Sytek, which has 330 employees and revenue of $50 million to $60 million, was founded in 1979. General Instrument Corp. of New York is the majority owner of Sytek.
General Instrument said Thursday it expects the deal to be completed and given government approval within three months.
