Cisco Acquires Two Networkers for $445 Million
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Cisco Systems, Inc. Thursday acquired network service providers Fibex Systems and Sentient Networks, Inc. in an effort to enable its Internet service provider clients to ease the transition from circuit-based technology to the asynchronous transfer mode.
Cisco will swap $445 million of its common shares in exchange for all outstanding shares and options of Fibex Systems and Sentient Networks. The acquisitions are slated to close by the fourth quarter. Both companies will be folded into Cisco's service provider line of business.
Petaluma, Calif.-based Fibex Systems produces integrated access digital loop carrier products, which integrate traditional voice services with data services using ATM as the underlying architecture. Sentient Networks of Milpitas, Calif., is responsible for the development of high density ATM circuit emulation service gateways, which transport circuit-based private line services across packet-based ATM networks.
Cisco said the two companies technologies, will allow service providers to combine circuit-based equipment with Internet-based data, voice and video gear, enabling them to switch over to cell and packet-based networks. The upgrade will allow service providers to still offer traditional voice capabilities over existing infrastructure, while using the more current services.