Networking giant

Cisco Systems

(CSCO) - Get Report

said Wednesday that it will acquire privately held

SightPath

, a developer of technology that helps data move faster and more efficiently over computer networks.

The all-stock deal values SightPath at roughly $800 million, and is expected to be completed by the fourth quarter. Cisco said the acquisition is subject to various unidentified conditions.

Waltham, Mass.-based SightPath develops hardware and software, known as content delivery networks, that monitor traffic and congestion on computer networks and quickly re-rout the flow of data along the path of least resistance. The company was founded in 1998 by developers from the

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Massachusetts Institute of Technology

.

SightPath chief executive Jim Ricotta and the company's 76 employees will join Cisco's content services unit, reporting to Cisco senior vice president James Richardson.

San Jose, Calif.-based Cisco said SightPath's products and technology will give its customers the ability to soup up both new and existing networks to more easily accommodate data-intensive applications such as real-time video.

Cisco is neck and neck with

Microsoft

(MSFT) - Get Report

in being the company with the largest market capitalization in the world, at roughly $540 billion.

Cisco shares were down 3/4, or 1%, to 77 1/8 in early trading Wednesday. (Cisco shares closed down 1 13/16, or 2%, at 76 1/16).