The networking giant will pay $450 million in stock for Airespace, a closely held San Jose, Calif.-based wireless-switch maker. The first report about the deal was a Jan. 6 story on News.com.
Airespace makes wireless network systems using the increasingly popular WiFi standard. The company's switches are used by business to allow workers to remain connected to the Internet while moving about the office.
"As part of our global systems approach to networking, we continually look for complementary technology that offers new value to our customers, said Cisco's Luca Cafiero. "Airespace is a strong technological and cultural fit with an outstanding team."
Cisco said Airespace has 175 workers. Co-founder Bob O'Hara is considered one of the originators of the 802.11 wireless standard, more affectionately known as WiFi.
Cisco is the leader in business WiFi and last year acquired Linksys for $500 million to become one of the largest consumer WiFi gearmakers.
Cisco shares closed up 29 cents, or nearly 2%, at $18.93 Wednesday. The stock was down 4 cents in the early aftermarket session.