SAN JOSE, Calif., July 7, 2000 - Cisco Systems, Inc., today announced a definitive agreement to acquire privately-held Netiverse, Inc. of San Jose, California. Netiverse is a leading provider of content acceleration technology that enhances the performance and functionality of networking devices. This acquisition supports Cisco's New World strategy to offer its customers a broad portfolio of content networking solutions for the delivery of web content.
Under the terms of the agreement, Cisco common stock worth an aggregate value of approximately $210 million will be exchanged for all outstanding shares and options of Netiverse. Cisco currently holds a minority stake of 20% in Netiverse. This acquisition will be accounted for as a purchase and is expected to be completed in the first quarter of Cisco's fiscal year 2001. In connection with the acquisition, Cisco expects a one-time write off of up to $.02 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.
Netiverse provides Cisco with content acceleration technology and expertise to help Cisco advance the development of next-generation content networking solutions. This acquisition strengthens Cisco's content networking solutions by offering its customers added performance capabilities for meeting the growing demands of distributing web content and managing large amounts of Internet traffic. Netiverse's technology was developed specifically for use across multiple product lines and will be integrated into Cisco's existing content networking solutions.
Netiverse, Inc. was founded in 1999. The 34 employees will be led by Netiverse CEO Gururaj Singh and will join the Workgroup Business Unit in Cisco's Enterprise Line of Business led by Senior Vice President James Richardson.