Cisco buys HyNEX for $127 million

Cisco Systems, Inc.(Nasdaq: CSCO) snapped up another company Monday, adding the privately held Israeli company HyNEX Ltd. for about $127 million in stock.

Cisco's shares closed at 64 3/8 Friday. The Hynex deal raises Cisco's company acquisition record to 12 this year, out of 20 to 25 expected purchases. The company's most recent purchase was Qeyton Systems, which it agreed to acquired about $800 million in stock in May.

HyNEX, a subsidiary of Elbit, Ltd. (Nasdaq: ELBTF), makes access devices for ATM network providers, aiding transmission of voice and data over public ATM networks. The acquisition furthers Cisco's plans to offer service providers the ability to deploy integrated data, voice and video services.

This is Cisco's fourth acquisition in Israel and underscores the company's global technology development. HyNEX's products are optimized for international markets and offer a migration path from traditional, circuit switch networks to open, packet-based networks.

Under the terms of the deal, an aggregate value of approximately $127 million in Cisco common stock and cash will be exchanged for the assets, liabilities, and stock options of HyNEX. The transaction will be accounted for as a purchase and is expected to be completed in the fourth quarter of Cisco's fiscal year 2000.

In connection with the acquisition, Cisco expects a one-time write off of about a penny a share for purchased in-process research and development expenses.

Elbit said it expects a $47 million net capital gain from the sale.