Cisco Systems to Acquire Token Ring Switch Innovator Nashoba Networks.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)--Aug. 6, 1996--Cisco Systems, Inc. today announced it has signed a definitive agreement to acquire privately held Nashoba Networks, Inc. and its Token Ring A local area network (LAN) access method developed by IBM. Conforming to the IEEE 802.5 standard, Token Ring uses a token ring access method and connects up to 255 nodes in a star topology at 4, 16 or 100 Mbps. switching technologies in a stock swap A stock swap also known as a share swap or equity swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. . Under the terms of the agreement, shares of Cisco common stock worth approximately $100 million will be exchanged for all outstanding shares and options of Nashoba. The number of Cisco shares issued will be calculated at closing based on the average price for Cisco's shares during a specified period. However, the number of Cisco shares issued at the time of the merger will not be less than 1,549,139 or more than 2,323,708. 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. . The transaction is expected to be completed by mid-September 1996 and is subject to various closing conditions, including shareholder votes. Token Ring switching is one of the fastest-growing segments of the local area networking (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. ) market. Cisco customers will now have access to products and technology comprising a complete set of solutions for Token Ring environments. Cisco's intent in acquiring Nashoba Networks is to give users a wide choice of Token Ring LAN switching
LAN switching is a form of packet switching used in local area networks. Switching technologies are crucial to network design, or to that minority of LANs that are used outside the home. products targeted at the workgroup and backbone environments. By joining forces, Cisco and Nashoba can help customers employ high-performance switched workgroup and backbone Token Ring LAN connectivity. Nashoba's approximately 40 employees will become part of the InterWorks Business Unit and be located primarily at Cisco's Chelmsford, Mass. facilities. This acquisition will enhance Cisco's product offerings in the fast-growing Token Ring switching arena by adding a highly functional workgroup/backbone switch that integrates with existing switch and router products. Within the CiscoFusion(tm) architecture, Token Ring switching allows customers to combine router and switch products to provide scalable campus and wide-area Token Ring solutions. Today's bridged networks can be upgraded with a backbone switch such as the Nashoba Concord product, which will become the Catalyst 1800, and provide access to high speed servers. In addition, the backbone switch can be a concentrator of desktop/workgroup switches such as the Catalyst 2600. Finally, the switches can front-end Cisco routers to exploit the rich feature set of the Cisco IOS Cisco IOS (originally Internetwork Operating System) is the software used on the vast majority of Cisco Systems routers and all current Cisco network switches. IOS is a package of routing, switching, internetworking and telecommunications functions tightly integrated with a (tm) software. A joint development agreement between Cisco and Olicom A/S, announced in March 1996, provides world-class Token Ring interface technology that will be included in future Cisco Token Ring switching products. By including the Nashoba products and engineering team, Cisco adds a rich set of software switching features that will be leveraged within both the current and future product line. Combined with Cisco IOS software and wide-area network switching, Cisco now provides users with a scalable enterprise switched network for legacy SNA (Systems Network Architecture) IBM's mainframe network standards introduced in 1974. Originally a centralized architecture with a host computer controlling many terminals, enhancements, such as APPN and APPC (LU 6. networks. Nashoba Networks Inc. was founded in 1993 and is based in Littleton, Mass. Company and product information can be accessed via the World Wide Web at http://www.nashoba.com 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 and WAN switches, dial-up access servers and network management software -- are integrated by the Cisco IOS 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 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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. CiscoFusion, Cisco IOS and Cisco Systems are 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. CONTACT: Cisco Systems, Inc. Patrick Wright, (508) 244-8164 (PR) pwright@cisco.com or Adam Stein, (408) 526-7388 (PR) astein@cisco.com or Mary Thurber, (408) 526-8893 (IR) mthurber@cisco.com or Nashoba Networks Hugh Kelly, (508) 486-3200, ext. 307 (PR) hkelly@nashoba.com |
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