Crossbeam Continues Expansion In Russia
A new joint venture in Russia for Crossbeam Systems Inc. of Boxborough will provide the company with significant opportunity for future growth in what James Freeze, the company's vice president of marketing, calls a blossoming market.
For the past few years some of Crossbeam's products have been distributed by the Russian Telecomm Equipment Co., or RTec. But that agreement is somewhat limited, Freeze said.
It became clear that in order to expand sales to Russian government entities, Crossbeam had to establish a more formal relationship with a Russian company.
So last week the company announced that it has created a new joint venture with RTec, named Crossbeam RT, which Freeze said should propel sales to new levels in the country.
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Crossbeam, a 10-year-old company with about 260 employees internationally, sells network security products that allow businesses to consolidate their IT security infrastructure into more streamlined systems.
For about two years, RTec in Russia has been a distributor for Crossbeam solutions, selling the company's products to a variety of industry players in Russia and the Commonwealth of Independent States, a regional compact of former Soviet states.
Now the Russian company will be the majority partner, with Crossbeam playing a supporting role, Freeze said.
Under the new agreement, Crossbeam components will be shipped to Russia and compiled there by the new joint venture company, Freeze said.
"We see Russia as a very large market opportunity," Freeze said. "It's one that will be much bigger than if RTec was just a reseller."
Crossbeam will be transferring its resources in the company - basically a couple of people, Freeze said - to the new joint venture.
The Russian partnership is an example of Crossbeam's expanding international presence, which makes up just more than half of the company's revenues, Freeze said. The company is privately held and does not disclose its financials.
In February the company added three new business partners in South America and has hired a regional sales manager for Latin America.
A month earlier the company promoted Tim Miller to vice president of international sales and George Mogannam to vice president of sales for the Americas.
Last year, the company renewed its 51,000-square-foot lease at the Tech Central office park in Boxborough.
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