Cisco to Buy Vovida Networks, IPCell Technologies

Updated from 11:42 p.m. EDT

Cisco (CSCO Quote), the world's largest networking company, just got bigger with the purchase of two privately held companies, Vovida Networks and IPCell Technologies, for about $369 million in stock.

The San Jose, Calif.-based company in a statement said that the move would add more Internet-protocol technologies (a type of format used for transferring data between two devices) to its portfolio to help customers provide new data, voice and video services over IP-based networks.

The networking giant, whose routers, switches and other hardware products make up most of the Internet's backbone, expects to take a one-time charge not to exceed 2 cents a share for purchased in-process research and development expenses. The acquisitions are expected to be completed in the second quarter of Cisco's fiscal year 2001.

IPCell Technologies, which is based in Richardson, Texas, is a software provider for broadband access networks combining Internet protocol and telephony service. San Jose, Calif.-based Vovida Network is a communications software provider and supplier of networking protocols.

The deal for the networking giant comes in the wake of a downgrade from Sanford C. Bernstein early Thursday to market perform from market outperform. Cisco finished Thursday regular trading up $2, or 3%, at $59.31.