Cisco Systems to acquire Grand Junction Networks Inc.; provides leadership desktop switching and Fast Ethernet solutions.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)--Sept. 27, 1995--Cisco Systems Inc. today announced an agreement to purchase Grand Junction Grand Junction, city (1990 pop. 29,034), seat of Mesa co., W Colo., at the junction of the Gunnison and Colorado rivers; inc. 1891. The shipping and processing center of a large ranch and irrigated farm region, it also serves the area's uranium, oil shale, gas, and Networks Inc., the inventor and a leading supplier of Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. (100Base-T) and Ethernet desktop switching products. The acquisition extends Cisco's LAN switch A network device that cross-connects clients, servers and network devices. Also known as a "frame switch," stand-alone LAN switches are common in all Ethernet networks. A four-port switch is also typically built into a wired or wireless router for homes and small business (see wireless and Fast Ethernet offerings for its CiscoPro product family to address desktop switching, a popular high-speed alternative for 10Base-T hub users. Cisco will acquire the privately held Grand Junction Networks 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. in which five million shares of Cisco stock will be exchanged for all outstanding shares and options of Grand Junction Networks. 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 closing price of Cisco common stock on Sept. 26, 1995, was $69.625 per share, giving the transaction an indicated value of $348 million. The transaction is expected to be completed by the close of October and is subject to various conditions, including clearance under the Hart-Scott-Rodino Antitrust Act Antitrust Act: see Clayton Antitrust Act; Sherman Antitrust Act. . "Our customers are migrating from shared hubs to desktop switches faster than we anticipated and with this acquisition, we can respond with a complete switched internetworking solution to the desktop," said John Chambers, 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. of Cisco Systems. Cisco's intent in acquiring Grand Junction Networks is to give users a range of LAN switching and Fast Ethernet products and to provide comprehensive desktop solutions for CiscoPro, a line of switching and remote access products targeted at small/medium businesses and individual professionals. "By joining forces, Cisco and Grand Junction are in a strong position to shape the future of high-performance desktop connectivity," said Howard Charney, president and CEO of Grand Junction Networks. "Our customers will benefit from the union of two market leaders." Expanded Switching Solutions Currently, Cisco's LAN switching products address network backbone and workgroup market segments. With Grand Junction's products spanning Fast Ethernet hubs, adapters and Ethernet switches, Cisco can now expand its presence to the desktop. As part of the CiscoFusion architecture for scalable switched internetworks, these products will complement Cisco's existing EtherSwitch and Catalyst families of LAN switches. As the desktop division of Cisco Systems' Workgroup Business Unit, Grand Junction will focus on cost-effective, high-performance desktop solutions. All FastLink products will continue to be offered and supported through Grand Junction's existing worldwide distribution channels and Cisco's distribution channels. Grand Junction developed and marketed the first Ethernet desktop switch, which provides dedicated Ethernet to the desktop. Grand Junction Networks pioneered the development of Fast Ethernet and was the first company to develop and market Fast Ethernet products. Grand Junction Networks, founded in 1992, employs 85 persons, most of them at the company's headquarters in Fremont, Calif. Information about Grand Junction Networks and its products is available at World Wide Web site http://www.grandjunction.com or by phone at 510/252-0726. Cisco Systems is the leading global supplier of enterprise networks, 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 ATM switches, dial-up access servers and network management software. These products, integrated by the Cisco IOS software, 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. Cisco news and product/service information are available at World Wide Web site http:///www.cisco.com. Cisco is headquartered in San Jose. -0- Note to Editors: Cisco, Cisco Systems and the Cisco logo are registered trademarks of Cisco Systems Inc. All other trademarks are the property of their respective holders. CONTACT: Cisco Systems Inc. Amanda Jaramillo, 408/526-7391 or Grand Junction Networks Inc. Marty Flock, 510/252-0726 |
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