Cisco to acquire router developer

Cisco to acquire router developer

Cisco Systems recently announced that it will acquire PipeLinks, a developer of Synchronous Optical Network (SONet)/Synchronous Digital Hierarchy (SDH) routers that can simultaneously transport circuit-based and IP traffic.

PipeLinks' SONet/SDH router allows service providers to offer integrated voice and data services at the edge of the network. It will use Cisco's Internetwork Operating System software as a foundation and will enable the delivery of services such as managed Internet access and native LAN services.

The acquisition is part of Cisco's end-to-end optical internetworking strategy, according to company officials. Cisco has been a minority investor in PipeLinks since 1997. Under the terms of the acquisition agreement, shares of Cisco common stock - with an aggregate value of about $126 million - will be exchanged for all outstanding shares and options of PipeLinks not yet owned by Cisco.

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