Cisco Snatches CAIS Software Solutions
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Cisco Systems Inc. Friday entered into a definitive agreement to acquire CAIS Software Solutions in a deal valued at $170 million.
Through the acquisition Cisco aims to enhance its strategy of offering complete broadband connectivity solutions for service providers addressing the multi-unit building market.
Previously known as ATCOM/INFO, CAIS is a wholly owned subsidiary of publicly traded CAIS Internet Inc. The company offers software applications that enable service providers to more easily provision and manage high-speed, broadband Internet services in hotels, apartments, airports and office buildings.
Gross cash proceeds to the Washington, D.C.-based CAIS will be approximately $147 million, of which approximately 27 percent will be placed in escrow, according to dcinternetnews.com, a sister company to internetnews.com.
The acquisition has been approved by the board of directors of each company and is subject to various closing conditions. In connection with the acquisition, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.01 per share.