SAN JOSE, Calif. -- September 15, 1999 -- Cisco Systems, Inc. today announced a definitive agreement to acquire privately-held Cocom A/S of Copenhagen, Denmark. Cocom is a leading European developer of high-speed Internet access solutions over cable, satellite and wireless networks based on international standards. This acquisition broadens Cisco's strategy to deliver industry leading standards-based broadband access products by adding Digital Video Broadcasting (DVB) solutions to Cisco's cable portfolio.
Under the terms of the agreement, Cisco common stock worth $65.6 million will be exchanged for all outstanding shares and warrants of Cocom. The acquisition will be accounted for as a pooling of interests and is expected to close in the first quarter of Cisco's fiscal year 2000. This acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
Complementing Cisco's existing standards-based cable product portfolio, Cocom's products are based on the Digital Video Broadcasting (DVB) standard. This standard is used in emerging digital set top box and broadband appliance infrastructures worldwide. Cocom's product portfolio includes head-end transmission and customer premise equipment. This acquisition will enable Cisco to offer a more complete, open standards-based cable access portfolio based on Cisco's industry leading uBR family and IOS technologies.
Cocom was founded in 1995. The 66 employees led by Cocom CEO Allan J. Vestergaard and founders Henrik Hvidtfeldt (President) and Gregers Kronborg (Executive Vice President) will continue to operate in Copenhagen, Denmark and will become part of the Cable Products and Solutions group within the Service Provider line of business.
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