San Jose, CA (August 10, 1995) -- Cisco Systems Inc. today announced anagreement to purchase Combinet Inc., a leading maker of ISDN remote-accessnetworking products. The acquisition will broaden Cisco's offerings forsmall office and residential users, particularly in the fast-growing areaof telecommuting.
Cisco will acquire the privately held Combinet in a stock swap in which twomillion shares of Cisco stock will be exchanged for all outstanding sharesand options of Combinet. The transaction will be accounted for as a poolingof interests. The closing price of Cisco common stock on Aug. 9 was $57.125per share, giving the transaction an indicated value of $114.2 million.The transaction is expected to be completed by the end of September, and issubject to various conditions, including clearance under theHart-Scott-Rodino Antitrust Act.
Combinet's management, employees and product line will be incorporated intoCisco's Access Business Unit, headed by Vice President and General ManagerDon Listwin.
Cisco's intention in acquiring Combinet is to broaden the solutions Ciscooffers for telecommuting; strengthen its expertise in
"The Combinet products round out Cisco's product line for remote-accessapplications and ISDN," Listwin said. Tom Williams, President and CEO ofCombinet, said, "With remote users increasingly demanding robust solutionsfor connection to corporate enterprise networks and the Internet, thecombination of Cisco and Combinet will establish a new standard in remoteLAN access."
Combinet sells several professional-office products which provide smalloffices and residential users with easy access to remotely locatedinformation using telephone lines based on ISDN technology. ISDN is anadvanced telecommunication service capable of moving information muchfaster than standard telephone service. Use of ISDN services is growingrapidly worldwide, and Combinet products are approved for use in more than20 countries. Both Cisco and Combinet have alliance relationships withtelephone companies who are in the forefront of providing ISDN service.
Combinet platforms and functions will interoperate and integrate within thefunctions of the
Cisco currently offers ISDN connectivity on a variety of products targetedat headquarters sites, departments and branch offices, including theCisco 7000,
Combinet, founded in 1988, employs 100 persons, most of them at thecompany's headquarters in Sunnyvale, CA. Information about Combinet andits products are available at World Wide Web sitehttp://www.combinet.com.
Cisco Systems isthe leading global supplier of enterprisenetworks,including routers, LAN and ATM switches, dial-up access servers and networkmanagement software. These products, integrated by the
Posted: Thu Apr 24 15:25:56 PDT 1997