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 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.