Cisco/Linksys Buys VOIP ATA Maker

Cisco Systems to acquire Sipura Technology

April 26, 2005

2 Min Read

SAN JOSE, Calif. -- Cisco Systems(R) (Nasdaq:CSCO) today announced a definitive agreement to acquire privately-held Sipura Technology, Inc. This represents Cisco's first acquisition for its Linksys division, the leading provider of wireless and networking hardware for home, Small Office/Home Office (SOHO) and small business environments. Sipura is a leader in consumer voice over internet protocol (VoIP) technology and is a key technology provider for Linksys' current line of VoIP networking devices. In addition to Sipura's valuable technology and customer relationships, their experienced team with extensive VoIP expertise will help build a foundation for Linksys' internal research and development capabilities in voice, video and other markets.

Under the terms of the agreement, Cisco will pay approximately $68 million in cash and options for Sipura. The acquisition is subject to various standard closing conditions, including applicable regulatory approvals, and is expected to close in the fourth quarter of Cisco's fiscal year 2005 ending July 30, 2005.

Consumer VoIP is rapidly expanding as independent providers and incumbent telecom and cable operators bring VoIP offerings to consumers. Synergy Research Group, a leading market research firm, reports that today there are close to 8 million home users worldwide using VoIP to make phone calls over their broadband connections. By 2009, Synergy anticipates this number to grow to 58.9 million home users using VoIP to talk to friends and family around the world using broadband and VoIP technology.

"VoIP is a strategic segment for innovation and growth for Cisco and Linksys. The acquisition of Sipura will augment Linksys' leading position in the rapidly growing VoIP market and is an example of Linksys' strategy to increase internal R&D capabilities in specific product categories," said Charles Giancarlo, Cisco CTO and Cisco-Linksys president. "Adding Sipura's technology reinforces our commitment to developing products in the consumer voice space."

Cisco Systems Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like