Cisco Systems to acquire IPmobile

In a move to accelerate the development of mobile 3G Internet services, Cisco Systems Inc. (San Jose, CA) has signed a definitive agreement to acquire privately-held IPmobile Inc. (Richardson, TX). Under the terms of the agreement, Cisco will exchange its common stock worth an aggregate value of approximately $425 million for all outstanding shares and options of IPmobile. This acquisition will be accounted for as a purchase and is expected to be completed in the first quarter of Cisco's fiscal year 2001.

In connection with the acquisition, Cisco expects a one-time charge of approximately $.03 per share on an after-tax basis for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.

IPmobile's technology strengthens Cisco's leadership as a network solutions provider in the emerging mobile Internet services market and delivers on Cisco's commitments to its existing wireless partners. The company is a leading developer of IP Radio Access Networks (IP-RAN) that will connect wireless base stations to the Internet in 3G networks. RANs control and manage the radio networks between the user devices and the base stations while providing access to data and voice services. IP-RANs, based on open standards, increase competition, lower costs and increase the functionality and services available to customers.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online