Cisco Systems on Thursday made its 22nd acquisition this year, purchasing privately-held ExiO Communications for about $US155 million in stock, according to a joint statement from the companies.
The acquisition is expected to be complete by the third quarter of 2001, subject to various closing conditions and approval by Cisco's board of directors. Cisco will account ExiO's acquisition as a purchase, and expects a one-time charge of 1 cent per share on an after-tax basis for purchased in-process research and development expenses, according to the statement.
ExiO, a 38-person company with offices in San Jose, California, and Seoul, develops wireless technologies for corporate Internet and intranet networks based on Qualcomm's CDMA (Code Division Multiple Access) and IP (Internet Protocol) technologies. The company was formed in 1999.
ExiO's employees will be integrated into Cisco's Enterprise Wireless Telephony Business Unit, the statement said, and be led by Ki Hyun Joo, ExiO's founder and chief executive officer.
With wireless communications attracting more users everyday and third generation (3G) wireless on the horizon, Cisco expects the acquisition of ExiO to strengthen its foothold in the burgeoning wireless market, the company said in the statement.
ExiO's acquisition will give Cisco an inroad to building wireless networks based on CDMA technology and help integrate voice and data applications developed using different wireless technologies, including GSM (Global System for Mobile Communication), said the statement.
