SAN JOSE, Calif.-Cisco Systems Inc., announced a definitive agreement to acquire The Linksys Group Inc., a privately held provider of home networking products including wired and wireless products for consumers and small office/home office users.
The acquisition represents Cisco’s entry into the consumer/SOHO networking market.
According to the agreement, Cisco will issue common stock with an aggregate value of approximately $500 million to acquire the Linksys business and to assume all outstanding employee stock options. The acquisition of Linksys is expected to close in the fourth quarter of Cisco’s fiscal year 2003.
The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.
“Fueled by consumer broadband adoption, the home networking space has experienced mass market acceptance. Linksys has captured a strong position in this growing market by developing an extensive, easy-to-use product line for the home and small office,” said John Chambers, president and chief executive officr of Cisco Systems. “This acquisition is a solid example of Cisco’s strategy to broaden its end-to-end portfolio of network solutions into high-growth markets such as wireless, voice-over-IP and storage area networking.”
