Cisco Systems, Inc. (Nasdaq:CSCO), today announced a definitive agreement to acquire Israeli start-up P-Cube.
P-Cube is a developer of IP service control platforms, which can help service providers identify subscribers, classify applications, improve service performance and charge for multiple IP services without costly infrastructure upgrades.
Under the terms of the agreement, Cisco will pay approximately $200 million in cash and options. The acquisition of P-Cube is subject to various standard closing conditions and is expected to close in the first quarter of Cisco's fiscal year 2005.
In connection with the acquisition, Cisco expects to record a one time charge for purchased in-process research and development expenses not to exceed $0.01 per share.
With this acquisition, Cisco said that it will offer service providers additional capabilities to control and manage advanced IP services such as voice-over-IP, interactive gaming, video-on-demand, and peer-to-peer, as well as create other differentiated offerings.
Cisco Systems senior vice president and general manager of the routing technology group Mike Volpi said that P-Cube's technology complemented Cisco's overall portfolio of broadband edge products.
Upon close of the acquisition, the P-Cube team will report to Pankaj Patel, vice president and general manager of Cisco's broadband edge and midrange routing business unit.
P-Cube was founded in 1999 and has 118 employees. The company has a development center in Herzliya and administrative offices in Sunnyvale, California.
Published by Globes [online] - www.globes.co.il - on Monday, August 23, 2004