Cisco march onward

Cisco Systems has announced today, November 10, 2000, that it has entered into a definitive agreement to acquire Active Voice in a deal valued at more than $300 million.

Under the terms of the agreement, Cisco will pay approximately $266 million in stock for Active Voice’s Unity operation and $30 million in stock for Active Voice’s circuit switched PBX voicemail solutions.

Once the acquisition closes, the PBX voicemail entity will be sold to a newly formed enterprise comprised of former Active Voice employees for $30 million and the purchase price will be shared by all Active Voice security-holders.

According to a statement released by Cisco, the acquisition brings Cisco a step closer to delivering unified communications solutions that will help enterprises enhance employee productivity, lower cost of ownership and provide better customer care.

As of Thursday, November 9, there were approximately 14.8 million shares of Active Voice outstanding on a fully diluted basis. The acquisition will be accounted for as a purchase and is expected to be complete in the second quarter of Cisco’s fiscal year 2001.

In connection with the acquisition, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed $0.02 per share.

The acquisition has been approved by the board of directors of each company and is subject to various closing conditions including Active Voice shareholder approval and approval under the Hart Scott Rodino Antitrust Improvements Act.