FRAMINGHAM (07/11/2000) - Cisco Systems Inc. last week announced a definitive agreement to acquire privately held Netiverse Inc., a San Jose developer of content acceleration technology, for US$210 million.
Netiverse's technology enhances the performance and functionality of networking devices involved in distributing Web content and managing large amounts of Internet traffic, Cisco says. Cisco plans to add this content distribution and management technology across multiple product lines, and integrate it into its existing content networking solutions, including the Catalyst 6500 switch, the content delivery appliances obtained from the acquisition of SightPath Inc. in March, and the recently acquired ArrowPoint Communications Inc. Web switches.
Netiverse is Cisco's third content networking acquisition this year, and the cheapest. Cisco paid $800 million for SightPath and just under $6 billion for ArrowPoint.
ArrowPoint is the second-largest acquisition ever made by Cisco, which has acquired over 50 companies since 1993.
Netiverse was founded in 1999. Its 34 employees will continued to be managed by Netiverse CEO Gururaj Singh. Netiverse operations will be melded into Cisco's Workgroup business unit and Singh will reports to James Richardson, senior vice president of Cisco's Enterprise line of business.
Under the terms of the agreement, Cisco common stock will be exchanged for all outstanding shares and options of Netiverse. Cisco currently holds a minority stake of 20 percent in Netiverse.
The acquisition is expected to be completed in the first quarter of Cisco's fiscal year 2001.