Cisco to Acquire Allegro Systems
Cisco Systems Inc. announced a definitive agreement to acquire privately-held Allegro Systems Inc. Allegro Systems is developer of Virtual Private Network (VPN) acceleration technologies designed to enhance the performance and functionality of secure networking platforms.
Under the terms of the agreement, Cisco common stock worth a gross aggregate value of up to $181 million will be exchanged for all outstanding shares and options of Allegro Systems. Cisco currently holds a minority investment in Allegro Systems. 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 including approval under the Hart Scott Rodino Antitrust Improvements Act.
For more information, visit www.cisco.com.