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Cisco Snatches CAIS Software Solutions

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.

Under the terms of the agreement, cash and Cisco common stock worth an aggregate value of approximately $170 million (U.S.) will be exchanged for the stock options and assets of the broadband subscriber management software business of CAISsoft.

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, a sister company to

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.