Cisco Buys Internet Messaging Service
Networking equipment giant
Cisco Systems
(CSCO) - Get Cisco Systems Inc. Report
has agreed to acquire Seattle-based
Active Voice
(ACVC)
for about $296 million worth of stock. The combination could provide a single Internet protocol network that combines data, voice and video.
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According to Cisco, it will pay about $266 million in stock for Active Voice's Internet-based unified messaging solutions, which combine email, voice and fax messages. It also will pay about $30 million in stock for Active Voice's circuit-switched voicemail systems, which it plans to sell to a newly formed entity comprised of former Active Voice employees.
As of Nov. 9, there were about 14.8 million shares of Active Voice outstanding on a fully diluted basis. Its shares closed yesterday at $14.94 on the
Nasdaq
.
The purchase, which is awaiting regulatory approval, is expected to be complete in the second quarter of Cisco's fiscal year 2001. Cisco expects a one-time charge for in-process research-and-development expenses not to exceed 2 cents a share.
Shares of Cisco fell by 2.23%, or $1.19, to $52 in recent
Nasdaq
trading.
