Networking heavyweight Cisco Systems Inc. announced Thursday that it has entered into a definitive agreement to buy privately held Ayr Networks Inc., a provider of high-performance distributed networking services and scalable routing software.
While Cisco already owns a minority stake in Ayr, the buyout deal would see Cisco offering company stock worth up to US$113 million for the other outstanding shares of Ayr, according to a statement released by Cisco, which is based in San Jose, California. Ayr's 30 employees would move to Cisco, with Ayr's Chief Executive Officer Tom Grennan set to join the company's Internet Technologies Division.
The deal has already received approval from both companies and is now subject to other closing conditions and approvals, the company said. If fully approved, Cisco expects the buyout to conclude in the first quarter of Cisco's 2003 fiscal year.
Ayr's technology will be integrated into the Cisco IOS software that powers the company's routers and switches, Cisco said. Also enhanced by the Ayr acquisition will be Cisco's ability to integrate software from multiple sources into its products, as well as to develop new software to enhance network performance, the company said.