Cisco Systems, Inc., today announced a definitive agreement to acquire the business of privately held The Linksys G...
March 20, 2003
Cisco Systems, Inc., today announced a definitive agreement to acquire the business of privately held The Linksys Group, Inc. of Irvine, Calif.
Linksys is the leading provider of home networking products with a line of wired and wireless products for consumers and SOHO (small office/home office) users. This acquisition represents Cisco’s entry into the high-growth consumer/SOHO networking market, which is expected to grow from $3.7 billion (U.S.) in 2002 to $7.5 billion in 2006 worldwide.
Home networks allow consumers to share broadband Internet connections, files, printers, digital music, photos, and gaming, all over a wired or wireless LAN (local area network).
Under the terms of the agreement, Cisco will issue common stock with an aggregate value of approximately US$500 million to acquire the Linksys business and to assume all outstanding employee stock options. The acquisition of Linksys is expected to close in the fourth quarter of Cisco’s fiscal year 2003.
“This acquisition supports our vision to drive innovations into the consumer market and create next-generation home networking solutions,” said Charles Giancarlo, senior VP and general manager, product development of Cisco Systems.