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Cisco buys StratumOne
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June 29, 1999: 9:47 a.m. ET
Networking firm pays $435M stock for semiconductor technology comapny
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NEW YORK (CNNfn) - Continuing a buyout spree, Cisco Systems Inc. said Tuesday it will buy semiconductor technology company StratumOne Communications Inc. for approximately $435 million in stock.
Cisco, a leading maker of telecommunications equipment, said the deal brings silicon integration technology that will help it provide new platforms for high-speed data, voice and video transmission to its customers.
The two companies have worked together to develop technology that will allow public networks to carry data at 10 gigabits a second. Cisco bought a minority stake in StratumOne in January.
As part of the deal, Cisco will offer between 6.31 million and 7.72 million shares for the outstanding shares of StratumOne. Shares of San Jose, Calif.-based Cisco (CSCO), rose 5/8 to 61-15/16 Tuesday.
StratumOne is privately held.
Cisco expects to complete the deal, which will be accounted for as a pooling of interests, by the first quarter of 2000. 
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