Cisco Systems to Acquire Summa Four Inc.;
Extends Advanced Voice Services to IP
Environment
[[Thanks to the heads up from MikeM on the Last Mile thread.
IMO, this is a marriage of thoroughbreds, as far as telco-related transmission and swtiching/routing convergence issues are concerned. I also think that we can safely anticipte a play for Excel <XLSW> in the near future, by either or both, LU and NT.
FWIW, Frank Coluccio]]
Business Wire - July 28, 1998 08:47
SAN JOSE, Calif.--(BUSINESS WIRE)--July 28, 1998--Cisco Systems
(NASDAQ:CSCO) Inc. today announced it has signed a definitive agreement to
acquire publicly-held Summa Four Inc. (NASDAQ:SUMA) of Manchester, N.H.
Summa Four is a leading provider of programmable switches.
Under the terms of the acquisition, between 1.0 and 1.4 million shares of Cisco
common stock will be exchanged for all outstanding shares and options of Summa Four.
Based upon Cisco's July 27, 1998 closing price of $97.50, the stock exchanged would
have a value of approximately $116 million.
In connection with the acquisition, Cisco expects a one-time charge against after-tax
earnings of between $.04 and $.09 per share for purchased in-process research and
development expenses in the first half of fiscal 1999. The acquisition has been approved
by the board of directors of each company and is subject to various closing conditions,
including approval under the Hart-Scott-Rodino Antitrust Improvements Act and
approval by Summa Four stockholders.
Cisco Extends Voice Services to Packet-Based Networks
Summa Four's open standards-based programmable switches will enable Cisco to offer
value-added telephony applications to new and existing service providers as well as
extending these services to a voice-over-IP (Internet Protocol) infrastructure.
These switches are used today by service providers for basic call switching as well as
delivering value-added services such as voice mail, calling card and voice-activated
dialing. This acquisition reaffirms Cisco's strategy to provide an open services
environment enabling applications for circuit- and packet-switched networks.
Cisco intends to expand Summa Four's existing relationships with application
developers and will help them to extend their service platforms to voice-over-IP
networks. Carriers will select from more than 50 market-leading application developers
who have built a broad array of voice solutions based on Summa Four's switching
family.
Summa Four was founded in 1976. The 210 employees led by Summa Four president
and CEO, Robert Degan, will become part of Cisco's Network-to-User Business Unit
headed by vice president and general manager Kevin Kennedy within Cisco's Service
Provider line of business.
About Cisco Systems
Cisco Systems (NASDAQ:CSCO) is the worldwide leader in networking for the
Internet. News and information are available at cisco.com.
Note to Editors: Cisco, Cisco Systems, and the Cisco Systems logo are registered
trademarks of Cisco Systems Inc. in the U.S. and certain other countries. All other
trademarks mentioned in this document are the property of their respective owners.
This release may contain forward-looking statements that involve risks and uncertainties.
These statements may differ materially from actual future events or results. Readers are
referred to the documents filed by Cisco with the SEC, specifically the most recent
reports on Form 10-K and 10-Q, which identify important risk factors that could cause
actual results to differ from those contained in the forward-looking statements, including
potential fluctuations in quarterly results, dependence on new product development,
rapid technological and market change, acquisition strategy, manufacturing risks, risks
associated with the Internet infrastructure, volatility of stock price, financial risk
management and future growth subject to risks.
CONTACT: Cisco Systems Inc.
Stacey Clark O'Hara, 408/527-9365 (Public Relations)
sohara@cisco.com
or
Mary Thurber, 408/526-8893 (Investor Relations)
mthurber@cisco.com
or
Summa Four Inc.
John Shaw, 603/625-4050
shaw@summa4.com
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