Cisco acquires Growth industry
- 22 February, 2000 12:49
Networking vendor Cisco Systems has added another company to its list of acquisitions, announcing a definitive agreement with Californian-based Growth Networks, a company involved in Internet switching fabrics, a new category of networking silicon.
In a statement relating to the agreement, Cisco said the acquisition expanded its ability to deliver terabit-performance, next-generation networking infrastructures to service providers.
Cisco common stock worth an aggregate value of about $US355 million will be exchanged for all outstanding shares, warrants and options of Growth Networks, under the terms of the agreement.
It is expected the acquisition will be completed in the fourth quarter of Cisco's fiscal year 2000, and will be accounted for as a pooling of interests. The acquisition is subject to various closing conditions, but has been approved by the board of directors of both companies. Growth Networks' 53 staff will join Cisco's Public IP Carrier Systems group.