Cisco to buy private firm for $113 m in stock

SAN JOSE, California: Cisco Systems Inc., the No. 1 maker of equipment that directs Internet traffic has announced a definitive agreement to buy the rest of privately held Ayr Networks Inc. for Cisco common stock worth up to $113 million.

Ayr Networks, based in Palo Alto, California, develops networking services and routing software, said Cisco, which added it currently holds a minority share in Ayr Networks. Cisco, based in San Jose, California, said it expects a one-time charge for purchased in-process research and development expenses not to exceed 1 penny a share.

The acquisition is expected to close in the first quarter of Cisco's fiscal year 2003. Led by Tom Grennan, Ayr Networks was founded in October 2000 and employs 30 people. Tom would be now joining the Cisco's Internet technologies division.

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