Cisco completes purchase of Nuova Systems
Cisco has completed its purchase of Nuova Systems, which develops products for the data center market.
The final purchase price will be based on Nuova Systems’ performance through fiscal 2011. The minimum payout will be $10 million, and the maximum will be $678 million.
The San Jose, Calif., startup was previously a majority-owned unit of Cisco, which had invested $70 million in the company for its 80 percent ownership stake. In April, Cisco announced that it was purchasing the remaining 20 percent interest in Nuova (story here).
Cisco announced its initial investment in Nuova in August 2006 and announced an amendment to the agreement in April 2007 that expanded the development scope, increased the funding commitment and raised the maximum potential payout of the transaction to $678 million.
Nuova will operate as an independent unit led by Luca Cafiero, Prem Jain and Mario Mazzola. Jain also will join the development council in Cisco's development organization.
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