San Jose, California-based Cisco says the buy is its first acquisition for its Linksys division, which sells wireless and networking hardware for home, small office/home office (SOHO) and small business environments.
Sipura sells consumer Voice over Internet Protocol (VoIP) technology and is a key technology provider for Linksys’ current line of VoIP networking devices.
VoIP is a strategic segment for innovation and growth for Cisco and Linksys, said Charles Giancarlo, CTO and Cisco-Linksys president. Adding Sipura’s technology reinforces our commitment to developing products in the consumer voice space.
This acquisition follows Cisco’s strategy of using acquisitions to build new technologies and speed time-to-market for its products. The outfit has never been shy of spending big amounts to acquire the technology it needs. Indeed since January 2004, ComputerWire’s Tech Finance estimates that Cisco has spent a staggering $2.28bn over fifteen acquisitions.
These include the $250m for InfiniBand switching specialist Topspin Communications last week. Other deals include $450m to acquire Airespace (January 2005); $65m for Protego Networks (December 2004); $16m for Jahi Networks (November 2004); $74m for Perfigo (October 2004); $55m for dynamicsoft and $128m for NetSolve (September 2004); $200m for P-Cube (August 2004); $9m for Parc Technologies (July 2004); $82m for Actona Technologies and $89m for most of the assets of Procket Networks (June 2004); $39m for Riverhead Networks and $5m for Twingo Systems (March 2004); and $750m Andiamo Systems (February 2004).
Yesterday’s acquisition is subject to various standard closing conditions, including applicable regulatory approvals. The deal is expected to close in the fourth quarter of Cisco’s fiscal year 2005 (ending July 30).
Upon close of the transaction, Sipura will be integrated into Cisco’s Linksys division.
