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.

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