SAN JOSE, Calif. -- May 4, 1998 -- Cisco Systems, Inc. today announced it has signed a definitive agreement to acquire privately-held CLASS Data Systems of Raanana, Israel and Cupertino, California. CLASS Datas software solutions enable policy-based quality of service in Internet Protocol (IP) networks.
Under the terms of the acquisition, shares of Cisco common stock and cash with an aggregate value of $50 million will be exchanged for all outstanding shares and options of CLASS Data. In connection with the acquisition, Cisco expects a one-time charge against after-tax earnings of between $.02 and $.04 per share for purchased in-process research and development expenses in the fourth fiscal quarter of 1998. The acquisition is expected to be completed by the beginning of June and is subject to certain closing conditions. This represents Ciscos first acquisition of a company in Israel.
Cisco Increases Leadership in Policy Networking
As networks become more complex, enterprise customers are looking to establish quality of service across IP networks using policy networking, an architecture that gives network administrators the ability to classify and prioritize network data traffic. This acquisition enhances the recently announced CiscoAssure Policy Networking initiative and will enable Cisco to offer quality of service as an end-to-end network solution.CLASS Datas products give network managers the ability to allocate network resources according to company policies and priorities. Such control capabilities mean business-critical applications are assured timely, high-quality network transport.
CLASS Data has 34 employees and was founded in 1996. CLASS Datas engineering team will remain in Israel and will become part of Ciscos Enterprise line of business. Arad Naveh, CLASS Datas President and CEO, and his marketing team will be located in San Jose.
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