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EXHIBIT 20.1
PRESS RELEASE
PRESS CONTACT: INVESTOR RELATIONS CONTACT:
Robyn Jenkins Roberta De Tata
Cisco Systems, Inc. Cisco Systems, Inc.
(408) 853-9848 (408) 527-6388
[email protected] [email protected]
INDUSTRY ANALYST RELATIONS CONTACT:
Dora Ferrell
Cisco Systems, Inc.
(408) 527-4202
[email protected]
CISCO SYSTEMS TO ACQUIRE VOVIDA NETWORKS AND IPCELL TECHNOLOGIES
KEY TECHNOLOGIES ACCELERATE DATA, VOICE VIDEO NETWORKS
SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 28, 2000--Cisco Systems, Inc., today
announced it has entered into definitive agreements to acquire privately held
Vovida Networks, Inc. of San Jose, California, and privately held IPCell
Technologies, Inc., based in Richardson, Texas. Vovida Networks is a
communications software provider and supplier of networking protocols. IPCell
Technologies is a provider of software for broadband access networks combining
Internet Protocol (IP) and telephony services.
The acquisitions of Vovida Networks and IPCell Technologies provide Cisco with
technologies that will help its partners and customers provide new data, voice
and video services and support Cisco's vision of a single, IP-based
communications network.
Under the terms of the agreement, Cisco common stock worth a gross aggregate
value of approximately $369 million (U.S.) will be exchanged for all outstanding
shares and options of Vovida Networks and IPCell Technologies combined. Cisco
currently has a minority interest of 20.5 percent in Vovida Networks and 17.2
percent in IPCell Technologies. These acquisitions will be accounted for as a
purchase and are expected to be complete in the second quarter of Cisco's fiscal
year 2001. In connection with the acquisitions, Cisco expects a one-time charge
for purchased in-process research and development expenses not to exceed $0.02
per share. Both acquisitions have been approved by the board of directors of
each company and are subject to various closing conditions.
These acquisitions will help decrease network costs and enable new
revenue-producing applications for service providers by combining voice, video
and data services over packet networks. By accelerating the development of new
applications for Voice Over IP networks, Cisco and its partners seek to expand
the solutions available for service providers. The software solutions offered by
Vovida Networks and IPCell Technologies are complimentary to Cisco's existing
IOS software and will interoperate with Cisco voice gateways.
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Vovida Networks was founded in 1999. The 65 employees will be led by Vovida CEO,
Alan Knitowski and report into the Voice and Video Business Unit, led by Lou
Santora, vice president and general manager, Voice and Video Services, Cisco's
Service Provider Line of Business. IPCell Technologies was founded in 1997. The
110 employees will be led by IPCell CEO, Allen Adams and report to Todd Murray,
vice president and general manager, Communications and Software and Networking
Services Group in the Service Provider Line of Business.
ABOUT CISCO SYSTEMS
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking
for the Internet. News and information are available at www.cisco.com.
# # #
Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of
Cisco Systems, Inc. and/or its affiliates in the U.S. and certain other
countries. All other trademarks mentioned in this document are the property of
their respective owners.
