Cisco Systems Inc. yesterday said that it has signed a definitive agreement to acquire multimedia networking software company Precept Software Inc. in a stock-swap deal valued at approximately $84 million. The announcement comes two days after Cisco said it would buy DSL vendor NetSpeed.
Judith Estrin, Precept's CEO, will become Cisco's chief technology officer.
Under the terms of the agreement, Cisco will exchange between 1.15 million and 1.35 million shares of its common stock for all outstanding shares of the privately-held Palo Alto, California-based company. The agreement is based on the $62.63 closing price of Cisco's stock on Mar. 11, the company said in a statement.
Cisco has held a minority interest in Precept since April 1996, and billed the acquisition as complementary to its strategy of developing networking solutions that integrate voice, data and video traffic, the company said.
Cisco will continue to sell Precept's IP/TV software, a client/server application that can broadcast live or pre-recorded digital video and audio over any Internet protocol-based network, the company said.
RELATED LINKS
Precept product overviews
From Precept.
Looking back at Precept
A company profile. Network World, 12/29/97.
Cisco Acquisition Page
Lists all the companies Cisco has bought or announced it will buy in recent months.
Cisco to buy DSL vendor NetSpeed
Network World Fusion, 3/10/98.
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