Cisco Systems, Inc. (Nasdaq: CSCO) announced Thursday it will acquire privately-held TransMedia Communications, Inc., in a deal valued at about $407 million.
The transaction should close in the first quarter of Cisco's fiscal year 2000. Cisco was up 1 7/16 to 117 11/16 in mid-morning trading.
Cisco is acquiring TransMedia's for its Media Gateway technology, which seamlessly unites multiple networks (ATM, IP, PSTN) of public voice communications, in order to help service providers transition to new world networks.
Between 3.15 and 3.85 million shares of Cisco common stock will be exchanged for all outstanding shares and options of TransMedia. Cisco's Wednesday closing price of $116.25 would make the deal $407 million.
"Today's announcement demonstrates Cisco's ongoing commitment and leadership in bringing together an open, standards-based New World communications network of integrated data, voice and video," Kevin Kennedy, Cisco senior vice president, service provider line of business said in a company release.
Cisco also announced Thursday major market expansion plan in India, and an agreement with Telenor, Norway's national telecommunications provider. Qwest Communications International Inc. (Nasdaq: QWST) also trumpeted extension of their alliance with Cisco, to develop a communications platform for its high-speed Internet Protocol network.