Cisco Systems yesterday announced a definitive agreement to acquire privately held HyNEX, an Israeli maker of intelligent access devices for ATM networks, for $US127 million.
This acquisition will allow Cisco to offer international service providers the ability to deploy integrated data, voice and video services. HyNEX's products offer a migration path from traditional, circuit-switched networks to packet-based networks, Cisco said.
HyNEX's products complement the Cisco 3800 family of access routers as a higher-end network convergence product for customer premises, Cisco says. HyNEX's products are optimised for international service provider markets and currently support European (ETSI) and North American (ANSI) standards.
HyNEX was founded in 1993. The company's 49 employees will continue to be managed by HyNEX co-general managers Dotan Peleg and Haim Volinsky. Peleg and Volinsky will report to Sylvia Summers-Dubrevil, group vice president of the public access managed network services group in Cisco's service provider line of business.
Under the terms of the agreement, Cisco common stock and cash will be exchanged for the assets, liabilities and stock options of HyNEX. This transaction will be accounted for as a purchase and is expected to be completed in the fourth quarter of Cisco's fiscal year 2000.
In connection with the acquisition, Cisco expects a one-time write off of approximately $.01 per share for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company and is subject to various closing conditions.