Cisco Systems has recently announced a definitive agreement to acquire privately-held Allegro Systems in a deal valued at around $181 million.
Under the terms of the agreement, Cisco common stock worth a gross aggregate value of up to $181 million will be exchanged for all outstanding shares and options of Allegro Systems.
In connection with the acquisition, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.01 per share.
The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
Allegro Systems is the developer of Virtual Private Network (VPN) acceleration technologies designed to enhance the performance and functionality of secure networking platforms.
According to Cisco the acquisition of Allegro Systems enhances Cisco’s existing VPN and security solutions with added performance capabilities to meet the growing security requirements of organisations connecting remote offices, employees and customers to corporate networks and the Internet.
With the continued growth of the Internet, network security technologies are becoming increasingly vital in helping protect corporate networks and valuable data from potential intrusion, corruption and other security vulnerabilities.
According to a statement Allegro Systems’ VPN acceleration technologies and expertise will advance the integration of highly scalable security within existing networks and complement Cisco’s portfolio of security products.