Cisco Systems Corp says it will acquire Ottawa, Canada-based Skystone Systems Corp, in a deal valued at $89.1m. Skystone develops semiconductor products for integrating telecommunications functions in advanced fiber optic networks. Cisco will take control of all outstanding shares, warrants and options of Skystone in exchange for $22.6m in cash and one million shares of Cisco stock, currently worth about $66.5m. As a result of the deal, Cisco expects to take an after tax charge of between $0.08 and $0.13 in the fourth quarter.
