Dial Market Offerings Expand Through Digital Modem Personnel and Technology
SAN JOSE, Calif. - October 25, 1996 - Cisco Systems, Inc. today announced it has completed the purchase of Telebit Corp. and its Modem ISDN Channel Aggregation (MICA(TM) technologies.
By the terms of the July 22 agreement, Telebit sold its analog modem business, NetBlazer and MicaBlazerproducts and other assets and liabilities to a new entity formed via a Telebit management buyout, for a $31.5 million promissory note and $3.5 million in redeemable preferred stock. Under the subsequentdefinitive agreement, Cisco then purchased the remaining Telebit Corp., which consisted of Telebit patents, MICA intellectual property and MICA personnel, and assumed the $35 million financing for the management buyout. The total transaction value was worth approximately $200 million in cash, net of option proceeds. The new entity created by the management buyout assumes the name Telebit Corp. with James D. Norrod as president and CEO.
The addition of MICA digital modem technology provides Cisco with high density modem technologies ideally suited for the enterprise networking customer and Internet service provider network environments. By providing higher dial densities, product flexibility, faster time-to-market and investment protection for both new and existing customers, MICA technology enables the simultaneous support of remote access users through both analog modems and ISDN devices.
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This press 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 and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.