SAN JOSE, Calif., March 1, 2000 -- Cisco Systems, Inc., today announced a definitive agreement to acquire privately-held Atlantech of Glasgow, Scotland. Atlantech is a leading provider of network element management software, which is designed to help configure and monitor network hardware. This acquisition expands Cisco's New World strategy to deliver end-to-end network management functionality to enable the delivery of integrated data, voice and video networks.
Under the terms of the agreement, Cisco common stock with an aggregate value of approximately $180 million will be exchanged for all outstanding shares and options of Atlantech. Cisco already has a minority stake of 9.5% in Atlantech. In connection with the acquisition, Cisco expects a one-time charge against after-tax earnings of up to $.02 per share for purchased in-process research and development expenses in the fourth quarter of fiscal 2000. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions, including approval under the Hart Scott Rodino Antitrust Improvements Act.
Cisco is acquiring Atlantech to provide service providers and ecosystem partners with a single integrated platform for enabling network management functionality across multiple diverse networks. With this acquisition, Cisco will be able to offer service providers a software framework for managing Cisco's comprehensive family of networking products. Additionally, the software framework provides a platform for service providers to develop element management applications to support complex heterogeneous networking environments. Using Atlantech's element management software, service providers will be able to deploy reliable, scalable and interoperable networks.
Atlantech's open, standards-based element network software is a fundamental building block for managing the overall network environment. Element management software performs provisioning and performance management functions across multiple elements of a service provider's network. Atlantech's software is designed to interact with other existing management systems such as legacy OSS (Operation Support Systems) and billing software, both of which are widely deployed in service provider networks today. Leading service providers are already using Atlantech's software solutions and the company is currently in trials with an additional 20 service providers.
Atlantech was founded in 1992. The 120 employees will be led by CEO David Sibbald and will join the Communications Software and Network Services Group within the Service Provider Line of Business. The team will remain based in Glasgow, Scotland.
