Cisco to Acquire ExiO
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San Jose-based Cisco Systems (Nasdaq: CSCO) continued its push in the wireless Internet space today with a definitive agreement to acquire ExiO Communications, also based in San Jose, and the 23rd acquisition for the company this year.
ExiO develops in-building, wireless technologies for corporate networks based on standard, Code Division Multiple Access (CDMA) technologies. In an official statement from the company, representatives from Cisco said the acquisition is meant to enhance Cisco's "New World strategy" for addressing the in-building wireless market.
"ExiO's wireless telephony builds on Cisco's existing wireless technology designed to add mobility to voice-over-IP (Internet Protocol) services," says Robyn Jenkins, a Cisco spokesperson. 'It gives the user the ability to move between the private and public cellular domains without any interruption in service."
Though yet to be corroborated by an analyst research firm, Cisco estimates more than one billion subscribers will be accessing the wireless Internet by 2004.
Neither company would comment further on the deal, valued at approximately $155 million of Cisco's common stock for all outstanding shares and options of privately held ExiO.
Following the announcement, Cisco was down slightly in late-afternoon trading at $50.938 per share.