Cisco to acquire Hammerhead, Navarro

To bolster its IP and Ethernet aggregation offerings, Cisco Systems on Wednesday announced definitive agreements to acquire privately-held Hammerhead Networks Inc. of Billerica, Mass., and Navarro Networks Inc. of Plano, Texas, for a combined stock value of $258 million.

Hammerhead Networks' software will augment Cisco's IP aggregation portfolio of cable, broadband and leased-line products, the company says. Navarro Networks' ASICs designs will aid Cisco's development of Ethernet switching systems.

Hammerhead develops software designed to accelerate the delivery of multiple IP service features, such as billing, security and quality of service, without degrading network performance. Cisco currently holds a minority interest in Hammerhead.The company was founded in April 2000. Its 85 employees, including CEO Eddie Sullivan, will join the Cable business unit in Cisco's Network Edge and Aggregation Routing Group Under the terms of the agreement, Cisco common stock worth up to US$173 million will be exchanged for all outstanding shares and options of Hammerhead not already owned by Cisco.

Navarro develops Ethernet ASICs. Its technology will enhance Cisco's internal development of high-end ASICs for next-generation Ethernet switching platforms.

Cisco currently holds a minority interest in Navarro. The comp was founded in March 2000 and its 25 employees, including CEO Mark Bluhm, will join the Internet Systems business unit in Cisco's Internet Switching and Services group.

Under the terms of the agreement, Cisco common stock worth up to $85 million will be exchanged for all outstanding shares and options of Navarro not already owned by Cisco.

Both acquisitions are expected to close in the fourth quarter of Cisco's fiscal year 2002.

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