SAN JOSE, Calif. -- June 17, 1999 - Cisco Systems, Inc. today announced a definitive agreement to acquire privately-held TransMedia Communications, Inc. of San Jose, California. TransMedia has developed an industry-leading Media Gateway technology that seamlessly unites the multiple networks (ATM, IP, PSTN) of public voice communications, providing a successful transition to New World networks. This acquisition underscores Cisco's commitment to offering service providers an accelerated migration from Old World circuit-based networks to New World packet-based networks.
Under the terms of the agreement, between 3.15 and 3.85 million shares of Cisco common stock will be exchanged for all outstanding shares and options of TransMedia. Based upon Cisco's June 16, 1999 closing price of $116.25, the stock exchanged would have a value of approximately $407 million. The transaction is expected to close in the first quarter of Cisco's fiscal year 2000. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
"Today's announcement demonstrates Cisco's ongoing commitment and leadership in bringing together an open, standards-based New World communications network of integrated data, voice and video," said Kevin Kennedy, Cisco senior vice president, service provider line of business.
New World, Open Packet Telephony Networks for Service Providers
Cisco is acquiring TransMedia's Media Gateway technology to help service providers transition to New World network solutions. This is achieved through paced migration of traditional voice traffic from circuit-based networks onto packet networks. TransMedia provides an innovative solution by integrating ATM-based circuit switching and voice-over-packet technologies in an open, standards-based environment. TransMedia's technology is complementary to Cisco's industry leading voice-over-packet product line.TransMedia was founded in 1998. The 66 employees led by TransMedia president and CEO Gwong-Yih Lee will report to Brad Wurtz, vice president and general manager of Cisco's Multiservice-Switching Business Unit.
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