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To: Diamond Jim who wrote (7263)	4/13/1999 9:31:00 AM
From: Mark Palmberg	Read Replies (1) \| Respond to of 21876

Cisco to Acquire GeoTel In $2 Billion Stock Swap SAN JOSE, Calif. -- Networking-equipment giant Cisco Systems Inc. said early Tuesday it agreed to buy GeoTel Communications Corp. for about $2 billion in stock. GeoTel makes software for routing phone callers to big companies' least busy call centers. The purchase by Cisco comes close on the heels of two minor deals: earlier this month Cisco agreed to buy Fibex Systems and Sentient Networks, two California-based asynchronous transfer mode, or ATM, network providers, for a combined $445 million in stock. Geotel's software keeps track of operators with time on their hands in call centers for airlines, financial firms and catalog companies. Unlike older call-distribution systems that simply distribute calls on a percentage basis, Geotel's network software can tell which operators are free in call centers around the country. Cisco said it will exchange 0.5138 common shares of its stock for every outstanding share and option of GeoTel. The deal's value is based on Cisco shares' closing price of $177.75 Monday. Cisco said the acquisition will be be accounted for as a pooling of interests and its expected to close in the fourth quarter, pending regulatory and GeoTel shareholder approval. Cisco said the acquisition requires an antitrust review. Cisco's board has already approved the acquisition. The company said the acquisition "is an extension of our commitment to open voice technology."