Transaction adds to Enterprise Network Management Offerings
SAN JOSE, Calif. - October 14, 1996 - Cisco Systems, Inc. today announced it has signed a definitive agreement toacquire privately held Netsys Technologies through a stock purchase. Netsys is a pioneer in network infrastructuremanagement and performance analysis software.
Under the terms of the stock purchase, shares of Cisco common stock worth approximately $79 million will be exchangedfor all outstanding shares and options of Netsys. Cisco has held a minority equity interest in Netsys since February1995 along with a strategic reseller agreement. Cisco expects the agreement will result in a one-time charge againstafter-tax earnings of between 5 and 6 cents per share in its second fiscal quarter of 1997 as a write-off of in-processresearch and development. The transaction is expected to be completed by November 1996 and is subject to variousclosing conditions including Netsys shareholder approval.
Cisco's intent in acquiring Palo Alto, Calif. based Netsys Technologies is to give customers the ability to simulatetheir network design in order to optimize capacity and performance. Netsys provides standards-based software capableof leveraging the graphical World Wide Web and Internet technology for managing today's hybrid internetworks. Use ofnetwork modeling, planning and analysis helps network managers consolidate their multimedia and multiprotocolnetworks and support multivendor network infrastructures. More than 200 Netsys customers already use networkmodeling to help scale their networks and forecast future needs. Netsys' approximately 50 employees, headed byCEO Herb Madan, will become part of Cisco's Central Engineering team headed by Vice President Stu Phillips.
Together with Netsys, Cisco will offer network infrastructure management solutions for
Netsys Technologies, Inc., founded in 1991, developed the first family of network intelligent management softwareproducts. Netsys Connectivity and Performance Tools provide the first accurate, protocol-sensitive view of thenetwork. The tools allow network managers to quickly and easily manage and plan changes to their networks andensure error-free connectivity and the highest levels of network performance and security. Netsys can be reachedon the Web at http://www.netsystech.com.
CiscoSystems (NASDAQ:CSCO) is the leading global supplier of
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