Cisco Systems To Acquire Semiconductor Specialist Stratumone Communications - Company Business and Marketing - Brief Article

EDP Weekly's IT Monitor, July 5, 1999

Cisco Systems Inc. plans to acquire privately-held StratumOne Communications Inc. of Santa Clara, Calif., a developer of highly integrated high-performance semiconductor technology. Cisco says the buy provides the silicon technology necessary to enable service providers to build next-generation high-speed data networks with "superior price/performance characteristics."

Under terms of the deal, between 6.31 and 7.72 million shares of Cisco common stock will be exchanged for all outstanding shares and options of StratumOne in a transaction worth about $435 million.

Cisco says it is acquiring StratumOne to equip service providers with high-end platforms to accelerate deployment of advanced New World services that integrate data, voice and video. Cisco and StratumOne have worked together to develop technology for next generation public networks capable of transporting data at 10 gigabits per second. StratumOne brings extensive experience in silicon integration. The acquisition builds on an existing relationship between the two companies that included a minority investment by Cisco in StratumOne in January.