SAN JOSE, CA September 27, 1995 -- Cisco Systems Inc. today announced anagreement to purchase GrandJunction Networks, Inc., the inventorand a leading supplier of Fast Ethernet (100Base-T) and Ethernet desktopswitching products. The acquisition extends Cisco's LAN switch and FastEthernet offerings for its CiscoPro(tm)product family to address desktopswitching, a popular high-speed alternative for 10Base-T hub users.
Cisco will acquire the privately held Grand Junction Networks in astock swap in which five million shares of Cisco stock will be exchangedfor all outstanding shares and options of Grand Junction Networks. Thetransaction will be accounted for as a pooling of interests. The closingprice of Cisco common stock on September 26 was $69.625 per share, givingthe transaction an indicated value of $348 million. The transaction isexpected to be completed by the close of October, and is subject to variousconditions, including clearance under the Hart-Scott-Rodino Antitrust Act.
"Our customers are migrating from shared hubs to desktop switchesfaster than we anticipated and with this acquisition we can respond with acomplete switched internetworking solution to the desktop," said JohnChambers, president and CEO of Cisco Systems.
Cisco's intent in acquiring Grand Junction Networks is to giveusers a range of LAN switching and Fast Ethernet products and to providecomprehensive desktop solutions for CiscoPro, a line of switching andremote access products targeted at small/medium businesses and individualprofessionals.
"By joining forces Cisco and Grand Junction are in a strongposition to shape the future of high-performance desktop connectivity,"said Howard Charney, president and CEO of Grand Junction Networks. "Ourcustomers will benefit from the union of two market leaders."
Expanded Switching SolutionsCurrently Cisco's LANswitching products address network backboneand workgroup market segments. With Grand Junction's products spanningFast Ethernet hubs, adapters and Ethernet switches, Cisco can now expandits presence to the desktop. As part of the CiscoFusion(tm) architecture forscalable switched internetworks, these products will complement Cisco'sexisting 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 desktopsolutions. All FastLink products will continue to be offered and supportedthrough Grand Junction's existing world wide distribution channels andCisco's distribution channels.
Grand Junction developed and marketed the first Ethernet desktopswitch, which provides dedicated Ethernet to the desktop. Grand JunctionNetworks pioneered the development of Fast Ethernet and was the firstcompany to develop and market Fast Ethernet products. Grand JunctionNetworks, founded in 1992, employs 85 persons, most of them at thecompany's headquarters in Fremont, CA.
Cisco Systems is the leading global supplier of enterprisenetworks, including routers, LAN and ATM switches, dial-up access serversand network management software. These products, integrated by the CiscoIOS=81 software, link geographically dispersed LANs, WANs and IBM networks.Cisco news and product/service information are available at World Wide Website. Cisco is headquartered in San Jose, CA. Itsstock is traded in the United States on NASDAQ under the symbol CSCO.Copyright 1996 Cisco Systems Inc.
Posted: Sep 27 12:44:53 1995