Cisco Systems to acquire Sipura Technology

Cisco Systems to acquire Sipura Technology

Tech Giant Cisco seems to be in acquisition mood nowadays. Just recently, they acquired grid-computing experts TopSpin and now they have decided to takeover a consumer Voice over Internet protocol (VoIP) technology provider for its Linksys division in Sipura Technology. The company would be spending around USD 68 million in cash and options for this San Jose, California based company.

As usual, the deal would require the approval of the shareholders and the regulatory authorities. However, Cisco is quite sure that they would complete all the formalities by July 2005. This newly acquired company would then become a part of the Cisco’s Linksys division and would be led by Senior Vice Presidents Janie and Victor Tsao.

Cisco CTO and Cisco-Linksys president, Charles Giancarlo said in a statement: “The acquisition of Sipura will augment Linksys’ leading position in the rapidly growing VoIP market and is an example of Linksys’ strategy to increase internal R&D capabilities in specific product categories. Adding Sipura’s technology reinforces our commitment to developing products in the consumer voice space.”

Cisco is rapidly expanding their VoIP base and reportedly sold more than 1 million VoIP ports through its Linksys division. This acquisition would help the company solidify their tech know-how in this industry. Sipura makes both Analog Telephone Adapters and multi-line IP Phones like its SPA-841 for the consumer and SOHO market. Cisco would continue to work with Sipura’s technological partners and expand the market base.