FRAMINGHAM (07/25/2000) - Cisco Systems Inc. Tuesday announced a definitive agreement to acquire privately-held Komodo Technology, which develops voice-over-IP devices, for US$175 million in stock.
Komodo's products allow analog telephones to place calls over IP-based networks. An analog phone can be connected directly to Komodo's product, which connects via an internal modem to a standard telephone line or via an Ethernet jack to a broadband - DSL, cable or wireless - access device.
Komodo was founded in 1999 and is based in Los Gatos, Calif. Komodo CEO Jan Fandriato will continue to manage the company's 25 employees that will join the packet telephony division within Cisco's Service Provider line of business.
Fandriato will report to Cisco Senior Vice President Kevin Kennedy.
Under the terms of the agreement, Cisco common stock will be exchanged for all outstanding shares and options of Komodo. This transaction includes a 10.5 percent minority investment made by Cisco in March 2000.
Cisco expects to complete the acquisition in the first quarter of its 2001 fiscal year.