Networking giant Cisco has acquired privately held US company Netiverse, in the hope of bolstering its Web content networking offerings, with the local Australian market set to feel the effects in the not too distant future.
On the table for Cisco is content acceleration technology, enabling the vender to increase its capabilities in distribution of Web content and Internet traffic management, said Brendan Leitch, consulting engineer for Cisco Australia.
"[The acquisition] is about content and skill acquisition," Leitch said. "It will have a significant impact because it will up the ante in the content switching market."Although Leitch couldn't give a specific date of when Australian integrators/resellers could expect new technology to start filtering down from the deal, he did suggest it will be concurrent with any releases in the US. "That technology will find its way into the Australian and global market at the same time," he said.
Announced late last week, the stock swap deal will be accounted for as a purchasing agreement and is valued at $US210 million. Approved by the board of each company, the deal will be completed by Q1 2001 and sees Cisco expecting a one-time write off of up to $US0.02 per share for purchased in-process R&D expenses, said a company statement.