Cisco Systems, Inc. today announced it has signed a definitive agreement to acquire privately-held Selsius Systems, Inc. of Dallas. Selsius is a supplier of network PBX systems for telephony over IP networks.
Under the terms of the acquisition, shares of Cisco common stock and cash with an aggregate value of $145 million will be exchanged for all outstanding shares and options of Selsius. In connection with the buyout, Cisco expects a one-time charge against after-tax earnings of between $.03 and $.06 per share for purchased in-process research and development expenses in the second quarter of fiscal 1999.
Selsius' technology will accelerate users' transitions from conventional, proprietary circuit-switched PBXs to multiservice LAN systems capable of integrating data and voice, Cisco said.
Selsius' IP phones and call manager software will initially enable small and medium businesses and branch offices to migrate voice traffic onto packet data networks. Cisco will extend the technology to the full campus environment, and will enhance it to enable applications such as virtual call centers and unified messaging.
Selsius was founded in 1997 as a wholly-owned subsidiary of Intecom, Inc. Intecom is a wholly-owned subsidiary of Lagardere SCA, a French corporation with $11 billion in revenue in media and technology. The 51 employees led by Selsius President and CEO David Tucker will become part of Cisco's Enterprise line of business headed by Senior Vice President Mario Mazzola.
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Details of the announcement
from Cisco.
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