Cisco Systems have announced a definitive agreement to acquire privately held NuSpeed Internet Systems, a developer of technology that connects storage-area networks to IP networks, for $450 million in stock.
NuSpeed Internet Systems technology will be implemented in Cisco MAN, WAN and LAN products. The company's technology implements the iSCSI protocol that provides a way for the two disparate networks to communicate.
Cisco, IBM and SANgate Systems earlier this year submitted a proposal to the Internet Engineering Task Force for running SCSI over TCP as a way to interconnect SANs and IP networks.
Cisco is increasing its activity in the SAN market. Last month, the company entered into a "tactical" alliance with Brocade to develop products for linking SANs across IP-based MANs and WANs. The products will tunnel fibre channel protocols through IP packets and bridge fibre channel SANs across Cisco wave division multiplexing gear, the companies say.
NuSpeed Internet Systems was founded in 1999. The 56 employees will continue to be managed by NuSpeed CEO Mark Cree and will operate in Cisco's enterprise line of business. Cree will report to Cisco senior vice president, James Richardson.
Under terms of the agreement, Cisco common stock will be exchanged for all outstanding shares and options of NuSpeed Internet Systems. This acquisition is expected to be completed in the first quarter of Cisco's fiscal year 2001.