Cisco to Buy Vovida , IPCell

$369M deal for software vendors Vovida Networks and IPCell Technologies

September 29, 2000

1 Min Read

SAN JOSE, Calif. -- Cisco Systems, Inc., today announced it has entered into definitive agreements to acquire privately held Vovida Networks, Inc. of San Jose, California, and privately held IPCell Technologies, Inc., based in Richardson, Texas. Vovida Networks is a communications software provider and supplier of networking protocols. IPCell Technologies is a provider of software for broadband access networks combining Internet Protocol (IP) and telephony services. The acquisitions of Vovida Networks and IPCell Technologies provide Cisco with technologies that will help its partners and customers provide new data, voice and video services and support Cisco's vision of a single, IP-based communications network.

Under the terms of the agreement, Cisco common stock worth a gross aggregate value of approximately $369 million (US) will be exchanged for all outstanding shares and options of Vovida Networks and IPCell Technologies combined. Cisco currently has a minority interest of 20.5 percent in Vovida Networks and 17.2 percent in IPCell Technologies. These acquisitions will be accounted for as a purchase and are expected to be complete in the second quarter of Cisco's fiscal year 2001. In connection with the acquisitions, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.02 per share. Both acquisitions have been approved by the board of directors of each company and are subject to various closing conditions.

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