Cisco Acquires CAIS

Cash and common stock worth a total of about $170M will be swapped for the stock options and assets of CAIS Software Solutions

October 20, 2000

1 Min Read

SAN JOSE, Calif. -- Cisco Systems, Inc. (Nasdaq:CSCO), today announced it has entered into a definitive agreement to acquire the broadband subscriber management software business of CAIS Software Solutions (CAISsoft), a wholly owned subsidiary of publicly traded CAIS Internet, Inc. (Nasdaq:CAIS) of Washington, D.C. CAIS Software Solutions, previously known as ATCOM/INFO, was acquired by CAIS Internet in 1999 and is based in San Diego, Calif. CAISsoft offers software applications that enable service providers to more easily provision and manage high-speed, broadband Internet services in hotels, apartments, airports and office buildings. The acquisition enhances Cisco's strategy of offering complete broadband connectivity solutions for service providers addressing the multi-unit building market.

Under the terms of the agreement, cash and Cisco common stock worth an aggregate value of approximately $170 million (U.S.) will be exchanged for the stock options and assets of the broadband subscriber management software business of CAISsoft. This acquisition will be accounted for as a purchase and is expected to be complete in the second quarter of Cisco's fiscal year 2001. 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.

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