Cisco Sees Greenfields

The router giant makes another acquisition.
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Cisco (CSCO) - Get Report grabbed a greenfield opportunity.

The San Jose, Calif., networking giant says it has agreed to buy closely held

Greenfield Networks

, a 60-employee chipmaking shop in Sunnyvale, Calif.

No terms were disclosed. Greenfield makes chips for Ethernet devices. Ethernet is the most common office computer network system, and it has been gaining popularity outside the office where telcos use the fast pathways to connect data traffic in cities.

"By integrating Greenfield Networks technology with Cisco's family of Metro Ethernet switches, we will be able to improve time to market of new carrier-class features to our service provider partners," Cisco Ethernet chief Kathy Hill said in a press release Monday.

Cisco expects to close the deal by year-end.

Cisco shares rose 6 cents to $26.80 in premarket trading Monday.