Cisco Will Buy Two Companies for $501 Million
SAN JOSE, Calif. (Reuters) - Cisco Systems Inc. (NasdaqNM:CSCO - news), the world's top maker of computer networking equipment, on Thursday said it would buy two companies for a combined $501 million in stock, extending its reach in the wireless communications and Internet appliance markets.
Cisco said in a statement it would buy InfoGear Technology Corp. of Redwood City, Calif., for stock valued at about $301 million. Privately held InfoGear's top product is the iPhone, an Internet screen phone that allows users to browse the Web and manage other appliances from remote locations. It also makes software.
In a separate statement, Cisco said it would buy JetCell Inc. of Menlo Park, Calif., for about $200 million in stock. Privately held JetCell develops communications systems that permit wireless network communications within a business's building.
Cisco already holds minority stakes in both companies, it said. It owns 8 percent of InfoGear and 10 percent of JetCell.
In connection with the JetCell deal, Cisco said it would record a one-time, after-tax charge of up to 3 cents per share to write off purchased in-process research and development.
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