RealTime IT News

Cisco Extends Buying Spree

Dipping into its coffers again to bolster its technology, network equipment giant Cisco will pay $9 million for full control of Parc Technologies.

Cisco already owned a 10 percent stake in the privately-held London company, having contributed to its $23 million second-round of financing along with NTT Corp. and Credit Suisse First Boston.

Parc's Route Server algorithms were devised to help service providers meet service level agreements (SLAs) while improving network utilization and reducing capital expenditure.

Initially, Parc's technology will be used by Cisco in its Multiprotocol Label Switching management portfolio, made available as part of its IP Solution Center (ISC).

The Parc sale is expected to close in the first quarter of Cisco's fiscal 2005. When it does, a dozen of the 20 Parc employees, including CEO Gideon Agar, will join Cisco, according to Cisco spokeswoman Elizabeth McNichols. They will report to Cliff Meltzer, senior vice president of Cisco's network management technology group.

The Parc purchase is the latest in a string of pickups. The company can certainly afford it. At the end of its most recent quarter, the company had approximately $19 billion in cash and marketable investments on its books.

Last month, Cisco paid $89 million for the assets of core router maker Procket Networks.

That was closely followed by an $82 million deal for the 83 percent of Actona Technologies that it doesn't already own. Privately held Actona makes wide area network (define) file services software to help large companies store and manage data at far-off locations.