Cisco Systems Completes Acquisition of StrataCom.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 10, 1996--Cisco Systems, Inc. today announced the completion of its purchase of StrataCom, Inc., following a July 9 vote of approval by StrataCom shareholders. On April 22, the two companies agreed to a stock-swap agreement in which shares of Cisco stock would be exchanged for all outstanding shares, options and warrants of StrataCom. Under the terms of the agreement, one share of Cisco common stock will be exchanged for one share of StrataCom common stock. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . Cisco will restate its financial results for fiscal years 1992-1996 to reflect the acquisition. The transaction is expected to have a slightly dilutive impact on earnings in fiscal 1996, including transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . 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 the 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: This press release contains forward-looking statements about future results that are subject to risks and uncertainties. Cisco's actual results may differ from the results discussed in the forward-looking statements. Please refer to Cisco's publicly filed documents, including 10-Ks and 10-Qs, for more information. Cisco IOS and Cisco Systems are trademarks, and Cisco and the Cisco 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. CONTACT: Cisco Systems, Inc. Mary Thurber, 408/526-8893 (IR) Adam Stein, 408/526-7388 (PR) or StrataCom, Inc. Randi Paikoff Feigin, 408/882-2231 |
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