Slightly O.T. - Cisco Shops For Acquisitions In Israel
dailynews.yahoo.com
---------------------------------------------------------------------
Thursday February 25 10:52 AM ET
Cisco Shops For Acquisitions In Israel
TEL AVIV (Reuters) - Internet networking leader Cisco Systems Inc. (Nasdaq:CSCO - news) said Thursday it was looking for start-up acquisitions and partnerships in Israel, the company's leading overseas market in terms of expansion opportunities.
''Compared to other countries, Israel is No. 2 on the list after the U.S.,'' vice president for business development, Mike Volpi, told a news conference.
''There are no start-ups in France, very few in the U.K. and none in Germany.''
Volpi, who is in Israel to meet with a host of start-ups and venture capital funds, said Cisco was interested in companies that develop wireless and voice-over-Internet technologies as part of its strategy to grow its non-core businesses.
He stressed, however, that he had not yet earmarked any companies for possible deals.
''You have to be educated before you spend,'' said Volpi.
Cisco invests 12 percent of its revenues per year in research and development while acquisitions are often done through share swaps, Volpi said. Cisco reported revenues of $8.46 billion in the fiscal year ended July.
The San Jose, Calif.-based company has invested $70 million to date in Israel. Last May, it bought CLASS Data Systems in a stock and cash deal worth $50 million. It also employs 80 engineers at its Herzliya-based research and development center.
Volpi said the faltering Middle East peace process had not deterred Cisco from increasing its presence in Israel.
''Basically what you want is a very stable environment,'' Volpi said. ''It seems relatively stable to us right now.''
He dismissed speculation that Cisco was still interested in buying Israel's VocalTec Ltd., but said that future partnerships were ''definitely possible.'' |
