Cisco Systems yesterday said that it has signed a definitive agreement to acquire multimedia networking software company Precept Software in a stock-swap deal valued at about $US84 million.
Under the terms of the agreement, Cisco will exchange between 1.15 million and 1.35 million shares of its common stock for all outstanding shares of the privately-held company. The agreement is based on the $US62.63 closing price of Cisco's stock on March 11, the company said in a statement.
Cisco has held a minority interest in Precept since April 1996, and billed the acquisition as complementary to its strategy of developing networking solutions that integrate voice, data and video traffic, the company said.
Cisco will continue to sell Precept's IP/TV software, a client/server application that can broadcast live or pre-recorded digital video and audio over any Internet protocol-based network, the company said.