said Friday it would buy a Swedish developer of fiber optics technology for stock valued at $800 million.
of Hagersten, near Stockholm, Sweden is Cisco's 11th acquisition target this year. Cisco expects to take a 5-cent charge against its earnings and close the purchase in its fourth fiscal quarter. The deal faces scrutiny from antitrust regulators.
Founded in 1998, Qeyton employs 52 people. The company develops metropolitan dense wave division multiplexing technology. This basic technology increases the capacity of optical fiber networks that simultaneously carry phone, Internet and video traffic. Qeyton says its particular style of dense wave division multiplexing enables customers to use unamplified fiber spans of 62 miles or more, cutting the amount of equipment needed and making it ideal for congested urban areas.
San Jose, Calif.-based Cisco said the company's technology will become part of its optical networking group, though its employees will remain in Sweden.
Cisco shares gained 2 1/2, or 4%, to 62 3/4. (Cisco finished down 5/16, or 0.5%, at 59 15/16.) The company's shares are recovering after a recent
article questioned Cisco's strategy of growth by acquisition and the associated accounting.