Cisco to acquire Sipura

Cisco Systems is to acquire privately-held San Jose, CA-based Sipura Technology in a move that represents the company's first acquisition for its Linksys division which provides wireless and networking hardware for home, Small Office/Home Office (SOHO) and small business environments.

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.

Sipura has developed the technology incorporated in leading VoIP adapters (including those integrated into home routers and gateways) and a multi-line IP phone for the consumer and SOHO market. Sipura's technology is currently used by Linksys in some VoIP products, including certain analog telephone adapters and wired and wireless routers with phone ports. Sipura currently has relationships with regional and top-tier VoIP providers. Linksys will continue to work with those service providers, as well as use its traditional retail channels to target consumers and SOHO environments with Sipura's line of VoIP products.