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Cisco buys Calista
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August 16, 1999: 8:18 a.m. ET
Networking firm to purchase U.K. phone technology company for $55M
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NEW YORK (CNNfn) - Cisco Systems Inc., the networking technology firm, announced Monday it is acquiring privately held British firm Calista Inc. for $55 million in stock.
Calista, based in Bucks, England, develops technology allowing business phones on different systems to work together over the Internet.
Cisco (CSCO) will exchange some of its common stock for all of Calista's shares. It expects to take a 1 cent per share after-tax charge due to the purchase. The acquisition is expected to be completed during the first quarter of Cisco's fiscal 2000.
Cisco has a stated strategy of building Internet-based voice systems for its business customers. It hopes the purchase of Calista will help it develop that.
Currently, many businesses phones run on a variety of older systems. Calista's stock-in-trade is making technology that can bridge the technological gap between those older systems and today's newer systems.
Cisco shares closed unchanged Friday at 63-9/16.
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Cisco Systems
Calista
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