BOSTON (03/29/2000) - Cisco Systems Inc. today said it will purchase SightPath Inc., a maker of Internet appliances, in an all-stock deal valued at approximately US$800 million.
Cisco's interest in privately held SightPath lies in SightPath's content-delivery appliances, which will help Cisco's customers deliver live streaming media, high reliability hosting and other capabilities, according to a statement from Cisco. SightPath's products, which include SightPath Appliance and SightPath Studio, are designed to continually collect data on Web traffic, congestion and server load in order to determine the best path to route users' requests, the statement said. SightPath's appliances also distribute content closer to the edge of the network, speeding delivery time, it said.
Under the terms of the agreement, Cisco common stock with an aggregate value of $800 million will be exchanged for all outstanding shares and options of SightPath. The deal has been approved by both companies' boards of directors and, pending various closing conditions, is expected to be finalized in the fourth quarter.
SightPath was founded in 1998, and its 76 employees, including SightPath Chief Executive Officer Jim Ricotta, will join Cisco's Content Services Business unit, according to Cisco.
The SightPath acquisition caps a busy month for Cisco. The networking giant also purchased two California companies: InfoGear Technology Corp., which makes Internet appliances and software used to manage information appliances, and JetCell Inc., which develops in-building wireless telephony products for corporate networks. [See "Cisco Announces Deal to Buy InfoGear, JetCell," March 16.]Cisco, in San Jose, California, is at +1-408-526-4000, or at http://www.cisco.com/. SightPath, in Waltham, Massachusetts, can be reached at +1-781-663-8200.