Cisco Systems to Acquire Aironet Wireless Communications
- By Scott Bekker
- November 09, 1999
Cisco Systems Inc. (www.cisco.com
) today announced an agreement to acquire publicly-held Aironet Wireless Communications (www.aironet.com
) of Akron, Ohio. Aironet is a developer of high-speed wireless LAN products.
Cisco's acquisition of Aironet will allow businesses to gain wireless capabilities that act as extensions to existing wired LANs. Cisco's New World vision networks that communicate using radio technology will be extended, enabling users to establish and maintain a wireless network connection anywhere throughout a building.
Aironet's product portfolio includes wireless adapter cards and "access points" that interface with wired infrastructures and manage wireless LAN traffic. Aironet Wireless Communications also provides wireless bridge products that provide point-to-point or point-to-multipoint connections among buildings. Aironet's customer base includes several Fortune 500 companies.
Under the terms of the acquisition, each share, option and warrant of Aironet will be converted to 0.637 shares of Cisco common stock. The transaction has an aggregate value of approximately $799 million based on Cisco's closing price of $75-5/16 on November 8. In connection with the acquisition, Cisco expects a one-time charge against after-tax earnings of between $.03 and $.08 per share for purchased in-process research and development expenses in the third quarter of fiscal 2000. The acquisition has already been approved by the boards of directors of both companies and is awaiting several closing conditions.
Scott Bekker is editor in chief of Redmond Channel Partner magazine.