Cisco Systems announced that it will be taking over data center networking systems maker FineGround Networks, a privately-held company based in Campbell, California.
Under the terms of the agreement, Cisco will pay approximately $70 million in cash and options for FineGround. The acquisition is subject to various standard closing conditions, including applicable regulatory approvals, and is expected to close in the fourth quarter of Cisco’s fiscal year 2005 ending July 30, 2005.
This the latest in a series of acquistions by Cisco after recently purchasing Internet telephony gear maker Sipura Technology and agreeing to pay $250 million for Topspin. Dinesh C. Sharma of CNET News.com writes:
FineGround, based in Campbell, Calif., makes gears designed to speed up, secure and monitor delivery of Web-based applications. The company said its technology is designed to enhance bandwidth efficiency and to decrease latency and server offload across networks.
FineGround’s technology is similar to that of Peribit Networks and Redline Networks, which were both bought by Cisco rival Juniper Networks for a combined $500 million last month.
“This acquisition further enhances Cisco’s strategy to converge application acceleration, security and a highly available network infrastructure seamlessly in the data center,” said Jayshree Ullal, Senior Vice President and General Manager of Cisco’s Security Technology Group. “FineGround augments Cisco’s leadership in content and security products enabling customers to accelerate application response time and minimize costs.”
Cisco currently has a strategic alliance with Hewlett-Packard. “We are working to expand the strategic alliance to aggressively grow into new areas,” said a Cisco Representative according to TheStreet.com. The rep insisted that the companies are not in competition with each other.
FineGround will become part of Cisco’s Security Technology Group and CEO Nat Kausik will continue to lead the team. FineGround’s products will be sold through Cisco sales and channels, and its technology will be integrated with Cisco’s ongoing development in this area. FineGround was founded in June 2000 and has 42 employees.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
