Cisco Systems Inc. will acquire San Jose-based AuroraNetics Inc. in a $150 million stock transaction. AuroraNetics makes 10 Gbps silicon technology for metro fiber networks.
Cisco will trade $150 million in its common stock for all outstanding shares of year-old AuroraNetics, it says. The deal has been approved by both boards of directors and will close in Cisco's first quarter of 2002. Cisco says it expects a one-time charge for in-process R&D expenses, but no more than $.01 per share.
AuroraNetics has 52 employees, who will join Cisco's Public Carrier IP Services Group in its service provider business, Cisco says.
AuroraNetics makes the silicon technology for Resilient Packet Rings, which allow significant amounts of IP and other data, including Ethernet, via high-speed metro networks, the company says. It also is intended to combine IP network intelligence with Sonet network redundancy.
Cisco makes a product called Dynamic Packet Transport, which is based on the open Spatial Reuse Protocol and uses RPR. AuroraNetics' silicon technology for RPR uses SRP and complements Cisco's DPT product by allowing the technology to scale from 2.5 Gbps to 10 Gbps, Cisco says.
Once purchased, Cisco plans to license the silicon design to companies interested in the 10 Gbps SRP RPR solutions, it says, a move intended to help accelerate industry availability of the technology.