Cisco Systems to Acquire American Internet Corporation
Enables Deployment of Internet Access Over Cable Networks
SAN JOSE, Calif. - August 21, 1998 - Cisco Systems, Inc. today announced
it has signed a definitive agreement to acquire privately-held American
Internet Corporation (AIC) of Bedford, MA. AIC is a leading provider of
software solutions for IP address management and Internet access.
Under the terms of the acquisition, shares of Cisco
common stock with an aggregate value of approximately $56 million will be
exchanged for all outstanding shares and options of AIC. The major
shareholders of AIC have signed irrevocable proxies in support of the
acquisition. In connection with the acquisition, Cisco expects a one-time
charge against after-tax earnings of between $.03 to $.06 per share for
purchased in-process research and development expenses in the first
fiscal quarter of 1999. These per share numbers do not take into account
the three-for-two stock split, which will be in effect September 15,
1998. The acquisition is expected to be completed by the beginning of
October and is subject to certain closing conditions.
Cisco Increases Internet Infrastructure Software Solutions
Building upon an existing original equipment manufacturer
(OEM) agreement with Cisco, the acquisition enables Cisco to extend
American Internet's technology into other areas including the service
provider line of business.
AIC's products, Network Registrar and Access Registrar,
enable the cost effective deployment and support of Internet devices such
as set-top boxes and cable modems. By simplifying the configuration and
authentication process for Internet devices, customers are able to
connect to the network without the need for remote on-site manual
intervention.
AIC has 50 employees and was founded in 1995. AIC's CEO,
Bob Brennan, will continue to lead the team and will report to Herb
Madan, vice president and general manager, in the service provider line
of business.
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking
for the Internet. Cisco news and information are available at
http://www.cisco.com.
# # #
Cisco, Cisco Systems, and the Cisco Systems logo are registered
trademarks of Cisco Systems, Inc. in the U.S. and certain other
countries. All other trademarks mentioned in this document are the
property of their respective owners.
This release may contain 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 SEC, 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,
including potential fluctuations in quarterly results, dependence on new
product development, rapid technological and market change, acquisition
strategy, manufacturing risks, risks associated with the Internet
infrastructure, volatility of stock price, financial risk management and
future growth subject to risks.
