Cisco Systems to Acquire Pentacom, Ltd.; New Technology to Improve Manageability of IP-Based Metropolitan Networks.Business Editors/High-Tech Writers 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)--April 11, 2000 Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Inc., today announced a definitive agreement to acquire privately-held Pentacom, Ltd., based in Herzliya, Israel. Pentacom is a leading provider of products implementing Spatial Reuse Protocol Spatial Reuse Protocol is a networking protocol developed by Cisco. It is a MAC-layer (sublayer of layer 2) protocol for ring-based packet internetworking, submitted to the IEEE 802.17 Resilient Packet Ring (RPR) Working Group for consideration as a standard. (SRP SRP - A data link layer protocol. ) which allows IP based metropolitan networks to offer the same protection and restoration benefits as SONET-based networks while doubling bandwidth efficiency The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . Pentacom's technology provides fiber management and hubbing for IP transport networks. This acquisition underscores Cisco's New World strategy to deliver end-to-end IP based solutions for service providers to deploy advanced data, voice and video services. Under the terms of the agreement, Cisco common stock with an aggregate value of approximately $118 million will be exchanged for all outstanding shares and options of Pentacom. Cisco made an 11% minority investment in Pentacom in June 1999. In connection with the acquisition, Cisco expects a one-time write off of up to $.01 per share for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company and is expected to close in Q4 of Cisco's FY 2000. This transaction is subject to various closing conditions. Cisco is acquiring Pentacom to expand its product portfolio to help service providers build more flexible, manageable and cost effective, end-to-end IP based networks. As bandwidth requirements Bandwidth requirements (communications) The channel bandwidths needed to transmit various types of signals, using various processing schemes. Every signal observed in practice can be expressed as a sum (discrete or over a frequency continuum) of sinusoidal and the use of IP in metropolitan markets increase, service providers are demanding equipment optimized for transporting and managing IP traffic over an optical infrastructure. Pentacom's 48 employees will be led by 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. Benny Schnaider, who has been CEO of Pentacom since its inception in late 1998. Pentacom will join the Public Carrier IP Systems Group within Cisco's Service Provider Line of Business. The team will be relocated to Cisco's existing Herzliya development center, very close to Pentacom's existing offices. About Cisco Systems Cisco Systems, Inc. (Nasdaq:CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) is the worldwide leader in networking for the Internet. News and information are available at www.cisco.com. Note to Editors: Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. |
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