Cisco acquires Netsys
Cisco Systems expands its repertoire of network management tools with the $79 million acquisition of Netsys Technologies.
The privately held Palo Alto, California-based company is the maker of the Enterprise-Solver line of network connectivity management and performance analysis tools. Cisco has held a minority equity interest in the company since February of last year.
The deal, which follows the recent $220 million acquisition of Granite Systems, a Gigabit Ethernet start-up, is expected to be completed by next month.
Through Netsys tools, Cisco will be able to offer customers the ability to simulate the design of their networks so they can get the most out of the network's capacity and performance. Netsys has already adapted its product line to the World Wide Web, providing a Net-based interface for its tools.
"It's a spreadsheet for network planners," said Don Miller, an anlayst with the market research firm Dataquest. "These are really handy tools."
Miller said any software that minimizes the effects of changes in a network is beneficial to Cisco customers. "A lot of network management tends to be reactive in nature," he noted.
Netsys technology is expected to be rolled into the IOS internetworking software product line as well as the CiscoWorks network management toolset. The company's approximately 50 employees, including CEO Herb Madan, will become part of Cisco's Central Engineering team.
Network General has also held a minority interest in Netsys since June.
| Cisco acquisitions for 1996 | |||
|---|---|---|---|
| Company | When | Value | Products |
| Netsys Technologies | October | $79 million stock transaction | Network connectivity management and performance analysis tools maker |
| Granite Systems | September | $220 million stock transaction | Fast Ethernet switching vendor |
| Nashoba Networks | August | $100 million stock transaction | Token Ring LAN switching products maker |
| Telebit's MICA Technologies | July | $200 million cash | Analog modem business company |
| StrataCom | April | $4 billion stock transaction | WAN switching solutions company |
| TGV Software | January | $115 million stock transaction | Internet software products supplier |
| Source: Cisco | |||