Further blending its networking capabilities with cable,
Cisco Systems, Inc. today announced it
will acquire American
Internet Corp. (AIC) for $56 million.
Bedford, Mass.-based AIC is a software solutions provider for IP address
management and Internet access. Cisco said it expects to finalize the
acquisition by the beginning of October.
Under the terms of the acquisition, shares of Cisco common stock with an
aggregate value of approximately $56 million will be exchanged for all
outstanding shares and options of AIC.
Cisco said it expects a one-time charge against after-tax earnings of
between $.03 to $.06 per
share for purchased in-process research and development expenses in the
first fiscal quarter of 1999. These per share numbers do not take into
account the three-for-two stock split, which will be in effect September
15, 1998.
According to Cisco, the acquisition will expand its Internet infrastructure
software solutions offerings. The purchase furthers AIC’s original
equipment manufacturer (OEM) agreement with Cisco, and now Cisco said it
plans to extend American Internet’s technology into other areas, such as
the service provider business.
AIC’s products include Network Registrar and Access Registrar, which deploy
and support Internet devices such as set-top boxes and cable modems. The
Registrar products ease the configuration and authentication process for
Internet devices, allowing customers to connect to the network without the
use of remote on-site manual intervention.