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Cisco With the KiSS

The router giant expands its home networking reach with another Linksys acquisition.
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agreed to pay $61 million in cash and stock to acquire KiSS Technology of Denmark, a closely held maker of home networking gear.

San Jose, Calif.-based Cisco said the deal marks the second acquisition for its Linksys home and small business networking unit.Cisco bought Linksys in 2003 for $500 million in a bid to restart its stalled growth engine by moving beyond its core market of selling communications gear to big companies. The Linksys unit has mostly performed well, but Cisco continues to spin its wheels in its core router unit amid stiff challenges from rival


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"As more and more entertainment content is delivered over the Internet and as consumers demand access to digital entertainment inside and outside of their home networks, networked entertainment devices will become an integral part of Consumer Electronics," said Cisco's Charles Giancarlo. "KiSS has emerged as a leader in networked video and audio products in Europe and we hope to use that expertise to expand worldwide."

Giancarlo's success in overseeing the Linksys buy has

given him heir apparent status to longtime CEO John Chambers.

Cisco said KiSS was founded in 1994 and has 65 employees.

Early Friday, Cisco was flat at $19.56.