SAN JOSE, Calif., June 5, 2000 - Cisco Systems, Inc., today announced a definitive agreement to acquire privately held HyNEX, Ltd of Shefayim, Israel. HyNEX, a subsidiary of Elbit, Ltd. (Nasdaq: ELBTF), is a leading developer of intelligent access devices for ATM network providers. This acquisition supports Cisco's New World strategy to offer service providers the ability to deploy integrated data, voice and video services. This is Cisco's fourth acquisition in Israel and underscores Cisco's growing global technology development. HyNEX's products are optimized for international markets and strengthen Cisco's global service provider solution by offering a migration path from traditional, circuit switch networks to open, packet-based networks.
Under the terms of the agreement, an aggregate value of approximately $127 million in Cisco common stock and cash will be exchanged for the assets, liabilities and stock options of HyNEX. This transaction will be accounted for as a purchase and is expected to be completed in the fourth quarter of Cisco's fiscal year 2000. In connection with the acquisition, Cisco expects a one-time write off of approximately $.01 per share for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
HyNEX's products strengthen Cisco's solution for service providers in international markets by accelerating the deployment of IP+ATM networks. This enables service providers to deliver an expanded range of data, voice and video services as well as provide large enterprises with managed network services and service level agreements. HyNEX's products complement the Cisco 3800 family of access routers as a higher end network convergence product for customer premises. HyNEX's products are optimized to meet the specific needs of international service provider markets and currently support European (ETSI) and North American (ANSI) standards.
HyNEX was founded in 1993. The 49 employees will be led by HyNEX co-General Managers Dotan Peleg and Haim Volinsky and report to Sylvia Summers-Dubrevil, group vice president of the Public Access Managed Network Services Group in Cisco's Service Provider Line of Business.
