Cisco will buy Pixstream for $369m.

By : |August 31, 2000 0

NEW YORK: Networking equipment giant Cisco Systems Inc., continuing its torrid pace of acquisitions, on Thursday said it would buy PixStream Inc., a maker of hardware and software for the delivery of digital video over high-speed networks, for $369 million in stock.


San Jose, Calif.-based Cisco said the purchase of privately held PixStream, of Waterloo, Ontario, extends its product reach in the market for providing high-speed voice, data and video systems to business customers.


The deal is the 17th announced so far this year by Cisco as it pursues its goal of 20 to 25 acquisitions by year-end. Cisco typically purchases companies to acquire technology or products that it has neither the time nor the capability to develop itself.


Cisco will record a charge of about 2 cents per share for purchased in-process research and development costs in connection with the PixStream deal, it said. The deal should close in Cisco’s current fiscal first quarter, which ends in late October. Cisco shares closed on Wednesday at $66-9/16 on Nasdaq.

(C) Reuters Limited 2000.

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