Cisco Pays $7.4 Billion for Cerent, Monterey Networks
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The acquisitions were made to strengthen Cisco's hold on the Internet infrastructure market, specifically optical transport.
Cerent's only product is the Cerent 454, a box that organizes and compresses voice, data and video to vastly increase the size of the pipe through which that information is sent.
Monterey Networks makes "cross-connect" technology made to boost network capacity at the core of an optical network. Cisco said it would integrate the two companies as business units within its Transport Group.
"Cerent and Monterey strengthen Cisco's optical internetworking strategy to enable a more complete transport solution through Internet architecture," Cisco said in a statement.
In July privately-held Cerent announced it was raising money to prepare for an initial public offering. There was no word on the future of those plans.