Stories by Jack McCarthy and Elizabeth Heichler

Cisco to buy Cerent for $US6.9 billion

Cisco Systems yesterday announced its move into the optical transport segment of the networking market with the acquisitions of Cerent Corp for $US6.9 billion ($11 billion) and Monterey Networks for $US500 million ($794.1 million).
The move sets Cisco up to compete with Lucent Technologies and Nortel Networks in the market for optical networking over fibre optic cables.
"This new market for Cisco will be a double-digit, billion-dollar opportunity," Larry Carter, Cisco's chief financial officer, said.