Cisco Systems announced last week it has signed definitive agreements to acquire two US-based networking vendors for approximately $US445 million.
Cisco will buy Fibex Systems, a maker of IADLC (Integrated Access Digital Loop Carrier) devices, which combine traditional voice services with data services using ATM as the underlying architecture.
The vendor will also buy Sentient Networks, maker of a high-density ATM CES (Circuit Emulation Service) gateway, which facilitates the offering of private-line services over ATM networks.
The purchases will help Cisco assist telecommunications organisations as they migrate to cell and packet-based networks by combining their circuit-based equipment with Internet-based data, voice and video gear, Cisco said.
Both acquisitions will be accounted for as a pooling of interests and will be completed in the fourth quarter of fiscal 1999.
The acquisitions, which have been approved by the boards of directors of both Fibex Systems and Sentient Networks, are still subject to regulatory approval and other closing conditions, according to Cisco.