Cisco aims for VPN boost with buys
The networking giant will acquire two companies, Altiga Networks and Compatible Systems, for $567 million in stock in a move to boost its virtual private network technology.
Under the terms of the agreement, Cisco will exchange $567 million worth of its stock for all outstanding shares, warrants and options of Altiga and Compatible, the company said.
Cisco said both acquisitions will enhance Cisco's New World VPN (Virtual Private Networks) strategy by providing enterprise and service provider users with remote access and extranet products.
VPNs provide secure network access across the public Internet for connectivity to telecommuters, mobile users and remote offices, as well as customers, suppliers and partners.
Altiga, a maker of remote access technology for VPNs, was founded in 1998. Its 76 employees will continue to be led by Altiga CEO Mark Freitas and will become part of Cisco's enterprise line of business. Compatible, which employs 68 people and makes VPN technology for service provider networks, was founded in 1988. Compatible CEO Matt McConnell will continue to lead the company as part of Cisco's service provider business unit.