Through the acquisition, Cisco hopes to broaden its portfolio of network products for delivering faster Web content.
As part of the deal, Cisco will exchange $210 million in common stock for outstanding shares and options of privately held Netiverse, in which Cisco holds a 20 percent stake. Cisco expects to conclude the transaction during its fiscal 2001 first quarter and write off 2 cents a share for in-process research and development.
Cisco plans to integrate Netiverse's technology into existing content-networking products.
Founded last year, San Jose, Calif.-based Netiverse will become part of Cisco's Workgroup Business Unit. Gururaj Singh, chief executive of Netiverse, which currently employs 34 people, will stay on board the new subsidiary.