Cisco Systems snap up AYR Networks

Cisco Systems has announced a definitive agreement to acquire privately-held AYR Networks in a transaction valued at up to $113 million.

Cisco Systems Inc today announced a definitive agreement to acquire privately-held AYR Networks Inc of Palo Alto, California.

AYR Networks develops distributed networking services and scalable routing software technologies. According to a statement, AYR Networks’ technology and expertise will augment the continued evolution of Cisco IOS Software, the network systems software for Cisco’s routing and switching platforms.

Under the terms of the agreement, Cisco common stock worth up to $113 million will be exchanged for all outstanding shares and options of AYR Networks not already owned by Cisco.

Cisco currently holds a minority interest in AYR Networks. In connection with the acquisition of AYR Networks, Cisco expects a one-time combined charge for purchased in-process research and development expenses not to exceed $0.01 per share.

The acquisition has received the required approvals from both companies and is subject to various closing conditions and approvals. The acquisition is expected to close in the first quarter of Cisco’s fiscal year 2003.