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EXHIBIT 99.1
Final
PRESS CONTACT: INVESTOR RELATIONS CONTACT:
Jeanette Gibson Roberta DeTata
Cisco Systems, Inc. Cisco Systems, Inc.
(408) 525-8965 (408) 527-6388
[email protected] [email protected]
INDUSTRY ANALYST RELATIONS CONTACT:
Art Rangel
Cisco Systems, Inc.
(408) 853-5705
[email protected]
CISCO SYSTEMS TO ACQUIRE ACTIVE VOICE CORPORATION
Technology Propels Adoption of
Unified Communications and IP Telephony for the Enterprise
SAN JOSE, Calif., Nov. 10, 2000 -- Cisco Systems, Inc., today announced it
has entered into a definitive agreement to acquire publicly held Active Voice
Corporation. (NASDAQ: ACVC) based in Seattle, WA. Active Voice is a leading
provider of Internet Protocol (IP)-based unified messaging solutions for the
enterprise, that combine e-mail, voice and fax messages into a single, common
mailbox accessible via any Internet-connected device anywhere, any time. The
acquisition of Active Voice supports Cisco's vision to deliver unified
communications and a single, end-to-end IP network combining data, voice, and
video for the corporate enterprise.
Under the terms of the agreement, Cisco will pay approximately $266 million
in stock for Active Voice's Unity(TM) operation comprised of IP-based unified
messaging solutions. Cisco will also pay approximately $30 million in stock for
Active Voice's circuit switched PBX voicemail solutions, which will be sold
after the acquisition closes, to a newly formed entity comprised of former
Active Voice employees for $30 million. The purchase price will be shared by all
Active Voice securityholders. As of November 9, 2000, there were approximately
14.8 million shares of Active Voice outstanding on a fully diluted basis. The
acquisition will be accounted for as a purchase and is expected to be complete
in the second quarter of Cisco's fiscal year 2001. In connection with the
acquisition, Cisco expects a one-time charge for purchased in-process research
and development expenses not to exceed $0.02 per share. The acquisition has been
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approved by the board of directors of each company and is subject to various
closing conditions including Active Voice shareholder approval and approval
under the Hart Scott Rodino Antitrust Improvements Act.
The growth of the IP telephony market is accelerating. The acquisition of
Active Voice's Unity operation represents an important step in the advancement
of Cisco's Architecture for Voice, Video and Integrated Data (AVVID) and
underscores Cisco's commitment to delivering unified communications capabilities
to the enterprise.
Active Voice's Unity product offerings complement Cisco's existing IP-based
voice solutions by providing advanced capabilities that enable the unification
of both text and voice. Cisco believes such applications will help drive
continued adoption of IP telephony. The acquisition of Active Voice's Unity
operation brings Cisco a step closer to delivering unified communications
solutions that will help enterprises enhance employee productivity, lower cost
of ownership, and provide better customer care.
Active Voice was founded in 1983. The Active Voice Unity team will be led
by Active Voice chief technology officer and vice president of advanced
products, Kevin Chestnut, and will report to David Kirk, senior vice president,
Cisco's Internet Communications Software Group.
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.
This report may contain projections or other forward-looking statements
regarding future events or the future financial performance of Cisco that
involve risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially from
actual future events or results. Readers are referred to the documents filed by
Cisco with the SEC, specifically the most recent reports on Form 10-K, 8-K, and
10-Q, each as it may be amended from time to time, which identify important risk
factors that could cause actual results to differ from those contained in the
forward-looking statements, including risks associated with acquisition
strategy, dependence on new product offerings, competition, patents,
intellectual property and licensing, future growth, rapid technological and
market change, manufacturing and sourcing risks, Internet infrastructure and
regulation, international operations, volatility of stock price, financial risk
management, and potential volatility in operating results, among others.
