Networking powerhouse Cisco Systems Inc. is buying privately-held NetSpeed Inc., which specializes in digital subscriber line (DSL) technology.
Cisco will exchange between 3.7 million and 4 million shares of its common stock for all outstanding shares and options of NetSpeed. Based on Cisco's closing stock price of $61.22 yesterday, the deal will be worth about $236 million, Cisco said today in a statement announcing the acquisition.
Cisco expects a one-time charge against after-tax earnings of 13 cents to 18 cents per share for in-process research and development expenses as part of the deal. The charge will be taken in the third quarter of this fiscal year. The acquisition, approved by the boards of both companies, now has to pass scrutiny of U.S. federal regulators.
NetSpeed, based in Austin, Texas, provides high-speed Internet access and data transmission over existing copper telephone lines. The company has 140 employees and they will continue to work in Austin, the statement said.
RELATED LINKS
NetSpeed profile
Network World, 12/29/97.
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