Cisco Acquires American Internet Corp.
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Bedford, Mass.-based AIC is a software solutions provider for IP address management and Internet access. Cisco said it expects to finalize the acquisition by the beginning of October.
Under the terms of the acquisition, shares of Cisco common stock with an aggregate value of approximately $56 million will be exchanged for all outstanding shares and options of AIC. Cisco said it expects a one-time charge against after-tax earnings of between $.03 to $.06 per share for purchased in-process research and development expenses in the first fiscal quarter of 1999. These per share numbers do not take into account the three-for-two stock split, which will be in effect September 15, 1998.
According to Cisco, the acquisition will expand its Internet infrastructure software solutions offerings. The purchase furthers AIC's original equipment manufacturer (OEM) agreement with Cisco, and now Cisco said it plans to extend American Internet's technology into other areas, such as the service provider business.