Cisco Systems will acquire IPmobile of Richardson, Texas, a provider of software systems that enable service providers to build the next generation IP-based wireless infrastructure known as third generation or ‘3G’ networks.
3G networks will enable a broad array of new and innovative wireless data and voice services. This acquisition underscores Cisco’s strategy to drive the development and adoption of open, Internet-based protocols throughout communications networks.
Under the terms of the agreement, Cisco common stock worth an aggregate value of approximately $425 million will be exchanged for all outstanding shares and options of IPmobile. This acquisition will be accounted for as a purchase and is expected to be completed in the first quarter of Cisco’s fiscal year 2001.
In connection with the acquisition, Cisco expects a one-time charge of approximately $.03 per share on an after-tax basis for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
IPmobile is a leading developer of IP Radio Access Networks (IP-RAN) that will connect wireless base stations to the Internet in 3G networks. RANs control and manage the radio networks between the user devices and the base stations, while providing access to data and voice services. IP-RANs, based on open standards, increase competition, lower costs and increase the functionality and services available to customers.
IPmobile, Inc. was founded in 1999. The 81 employees will be led by IPmobile CEO Russell Davis and report to Edward Paradise, Vice President and General Manager of the Technology and Mobile Business Unit (TMBU) in Cisco’s Service Provider Line of Business.
On July 27, Cisco Systems announced that it had acquired privately-held NuSpeed Internet Systems of Maple Grove, Minnesota. NuSpeed Internet Systems’ technology connects storage area networks and Internet Protocol networks.
NuSpeed Internet Systems technology will be implemented in Cisco solutions to interconnect storage area networks with metropolitan area networks (MANs), wide area networks (WANs) and local area networks (LANs).
NuSpeed Internet Systems was founded in 1999. The 56 employees will be led by NuSpeed Internet Systems CEO Mark Cree and will operate in the Enterprise Line of Business led by Senior Vice President James Richardson.