Cisco to Acquire Metro Fiber Networks Firm for $150 Million

Cisco (CSCO Quote - Cramer on CSCO - Stock Picks) signed a definitive agreement to acquire privately held AuroraNetics for $150 million in stock.

The networking company will record a charge for acquired in-process research and development expenses of no more than a penny a share.

AuroraNetics, which, like Cisco, is based in San Jose, Calif., develops 10-gigabits-per-second silicon technology for metropolitan fiber networks. In a press release, Cisco said the acquisition will aid the company's development of high-end routing technology designed to address the growth of data traffic in metropolitan networks.

Cisco expects to close the transaction in the first quarter of fiscal 2002 and will account for the acquisition as a purchase. The boards of both companies have approved the deal.