Cisco Systems is to acquire privately-held Hammerhead Networks of Billerica, MA and Navarro Networks of Plano, TX. Cisco currently holds a minority interest in both companies.
Cisco common stock worth up to $173 million will be exchanged for all outstanding shares and options of Hammerhead Networks not already owned by Cisco.
Hammerhead Networks, a developer of Internet software for billing and security was founded in April 2000. The 85 employees, led by chief executive officer, Eddie Sullivan, will join the Cable Business Unit in Cisco’s Network Edge and Aggregation Routing Group.
To acquire all the all outstanding shares and options of Navarro Networks it does not already own, Cisco will exchange $85 million of common stock.
Navarro Networks was founded in March 2000. The 25 employees of the company, led by chief executive officer, Mark Bluhm, will join the Internet Systems Business Unit in Cisco’s Internet Switching and Services Group.
In connection with the acquisitions, Cisco expects a one-time combined charge for purchased in-process research and development expenses not to exceed $0.02 per share. The acquisitions have received all required approvals of each company and are subject to various closing conditions and approvals.
Both acquisitions are expected to close in the fourth quarter of Cisco’s fiscal year 2002.