To all: what does everyone think about this announcement:
Cisco to Acquire WheelGroup
For About $124 Million in Stock
By an INTERACTIVE JOURNAL Staff Reporter
SAN JOSE, Calif. -- Cisco Systems Inc. agreed to acquire network-security
software developer WheelGroup Corp. for about $124 million in stock.
Cisco, the No. 1 computer-networking company, said the acquisition will help
expand its network-security offerings and create a more secure environment
for Cisco customers to do business on the Internet.
Under the terms of the acquisition, Cisco said it
will exchange between 1.8 million and 2.0 million
shares of Cisco common stock for the
outstanding shares and options of closely-held WheelGroup. Cisco stock
closed Wednesday at $65.50, up 56.25 cents, in Nasdaq Stock Market
trading.
In connection with the acquisition, Cisco said it expects to take a one-time
fiscal third-quarter charge against earnings of eight cents to 13 cents a share
for purchased-in-process research and development expenses.
WheelGroup, of San Antonio, Texas, was founded in 1995. Cisco said the
majority of the company's 75 employees will remain in San Antonio.
Recently, WheelGroup had been discussed as a possible candidate for an
initial public offering, because of what analysts saw as strong revenue
growth.
Last month, the U.S. Navy selected WheelGroup's NetRanger system for
selected land and sea-based networks, in partnership with BTG Inc. Also last
month, computer-services giant Electronic Data Systems Corp. agreed to
distribute technology and services using NetRanger and WheelGroup's
NetSonar technology.
Ed Plopa |
