Cisco Completes Acquisition of Telebit's MICA Technologies; Dial Market Offerings Expand through Digital Modem Personnel and Technology.SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 25, 1996--Cisco Systems, Inc. today announced it has completed the purchase of Telebit Corp. and its Modem ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. Channel Aggregation (MICA(TM)) technologies. By the terms of the July 22 agreement, Telebit sold its analog modem business, NetBlazer and MicaBlazer products and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and liabilities to a new entity formed via a Telebit management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. , for a $31.5 million promissory note and $3.5 million in redeemable preferred stock. Under the subsequent definitive agreement, Cisco then purchased the remaining Telebit Corp., which consisted of Telebit patents, MICA intellectual property and MICA personnel, and assumed the $35 million financing for the management buyout. The total transaction value was worth approximately $200 million in cash, net of option proceeds. The new entity created by the management buyout assumes the name Telebit Corp. with James D. Norrod as president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . The addition of MICA digital modem technology provides Cisco with high density modem technologies ideally suited for the enterprise networking customer and Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. network environments. By providing higher dial densities, product flexibility, faster time-to-market and investment protection for both new and existing customers, MICA technology enables the simultaneous support of remote access users through both analog modems and ISDN devices. Cisco Systems (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) is the leading global supplier of internetworking solutions for corporate intranets and the global Internet. Cisco's products -- including routers, LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and WAN switches, dial-up access servers and network management software -- are integrated by Cisco IOS(TM) software to link geographically dispersed LANs, WANs and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) networks. Company news and product/service information are available at World Wide Web site http://www.cisco.com. Cisco is headquartered in San Jose, Calif. -0- Note to Editors: Telebit is a registered trademark, and MICA is a trademark of Telebit Corporation. Cisco IOS and Cisco Systems are a trademarks, and Cisco and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. All other trademarks, service marks, registered trademarks or registered service marks mentioned in this document are the property of their respective owners. This press release may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Cisco with the S.E.C., specifically the most recent reports on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. CONTACT: Cisco Systems, Inc. Adam Stein, 408/526-7388 (Public Relations) astein@cisco.com Mary Thurber, 408/526-8893 (Investor Relations) mthurber@cisco.com |
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