Cisco said it might invest as much as $42m into Nuova at some future point and has the option to buy the remaining 20% interest in its new venture by early fiscal 2009. Under the deal, Cisco said potential payouts of between $10m and $578m are based on the success of Nuova’s products sold through Cisco.
The accounts of Santa Clara, California-based Nuova would be consolidated with Cisco’s starting in the new fiscal year.
San Jose, California-based Cisco said Nuova’s product development would complement Cisco’s current data center portfolio.
