Beautiful, CSCO buying Vovida Networks for 350mil in stock. Wait till CSCO hit's 50 then it's off to the races again.
(COMTEX) B: Cisco Systems to Acquire Vovida Networks and IPCell Techn
B: Cisco Systems to Acquire Vovida Networks and IPCell Technologies; Key
Technologies Accelerate Data, Voice Video Networks
SAN JOSE, Calif., Sep 28, 2000 (BUSINESS WIRE) -- Cisco Systems, Inc.
(Nasdaq:CSCO), today announced it has entered into definitive agreements to
acquire privately held Vovida Networks, Inc. of San Jose, California, and
privately held IPCell Technologies, Inc., based in Richardson, Texas. Vovida
Networks is a communications software provider and supplier of networking
protocols. IPCell Technologies is a provider of software for broadband access
networks combining Internet Protocol (IP) and telephony services.
The acquisitions of Vovida Networks and IPCell Technologies provide Cisco with
technologies that will help its partners and customers provide new data, voice
and video services and support Cisco's vision of a single, IP-based
communications network.
Under the terms of the agreement, Cisco common stock worth a gross aggregate
value of approximately $369 million (U.S.) will be exchanged for all outstanding
shares and options of Vovida Networks and IPCell Technologies combined. Cisco
currently has a minority interest of 20.5 percent in Vovida Networks and 17.2
percent in IPCell Technologies. These acquisitions will be accounted for as a
purchase and are expected to be complete in the second quarter of Cisco's fiscal
year 2001. In connection with the acquisitions, Cisco expects a one-time charge
for purchased in-process research and development expenses not to exceed $0.02
per share. Both acquisitions have been approved by the board of directors of
each company and are subject to various closing conditions.
These acquisitions will help decrease network costs and enable new
revenue-producing applications for service providers by combining voice, video
and data services over packet networks. By accelerating the development of new
applications for Voice Over IP networks, Cisco and its partners seek to expand
the solutions available for service providers. The software solutions offered by
Vovida Networks and IPCell Technologies are complimentary to Cisco's existing
IOS software and will interoperate with Cisco voice gateways.
Vovida Networks was founded in 1999. The 65 employees will be led by Vovida CEO,
Alan Knitowski and report into the Voice and Video Business Unit, led by Lou
Santora, vice president and general manager, Voice and Video Services, Cisco's
Service Provider Line of Business. IPCell Technologies was founded in 1997. The
110 employees will be led by IPCell CEO, Allen Adams and report to Todd Murray,
vice president and general manager, Communications and Software and Networking
Services Group in the Service Provider Line of Business.
About Cisco Systems
Cisco Systems, Inc. (Nasdaq:CSCO) is the worldwide leader in networking for the
Internet. News and information are available at www.cisco.com.
Note to Editors: Cisco, Cisco Systems, and the Cisco Systems logo are registered
trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain
other countries. All other trademarks mentioned in this document are the
property of their respective owners.
CONTACT: Cisco Systems, Inc.
Robyn Jenkins, 408/853-9848 (Press)
rojenkin@cisco.com
Roberta DeTata, 408/527-6388 (Investor Relations)
rdetata@cisco.com
Dora Ferrell, 408/527-4202 (Industry Analyst Relations)
dferrell@cisco.com
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KEYWORD: CALIFORNIA TEXAS
INDUSTRY KEYWORD: INTERNET
NETWORKING
SOFTWARE
TELECOMMUNICATIONS
MERGERS/ACQ
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