Cisco Systems to Acquire AuroraNetics
Cisco Systems Inc. has signed a definitive agreement to acquire privately held AuroraNetics Inc. (San Jose, Calif.). AuroraNetics is a developer of 10 gigabits per second (Gbps) silicon technology for metropolitan fiber networks. Under the terms of the agreement, Cisco common stock worth an aggregate value of up to $150 million will be exchanged for all outstanding shares of AuroraNetics. This acquisition will be accounted for as a purchase and is expected to close in the first quarter of Cisco's fiscal year 2002. 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. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
AuroraNetics' silicon technology is used in data-optimized fiber rings known as Resilient Packet Rings (RPR.) RPR offers service providers the ability to create high-speed metropolitan networks that efficiently transport significant amounts of IP and other data, including Ethernet. Cisco plans to license AuroraNetics' silicon design to companies interested in producing and participating in the development of 10Gbps SRP RPR-based solutions. Licensing AuroraNetics' design augments Cisco's existing licensing of 2.5Gbps SRP silicon and will help accelerate industry availability of 10Gbps RPR products.
For more information, visit www.cisco.com.