Biden's $400B vaccination plan Galaxy S21 preorders Google Doodle celebrates basketball inventor Drivers License breaks Spotify records WandaVision review Oculus Quest multiuser support Track your stimulus check

Cisco boosts wireless lineup with Exio buy

The networking giant bulks up its wireless business by acquiring privately held Exio Communications in a $155 million stock deal.

Cisco Systems bulked up its wireless business Thursday by acquiring privately held Exio Communications in a $155 million stock deal.

Shares of the network equipment giant slipped slightly at the opening bell, down 13 cents to $51.

According to Cisco, the purchase of Exio, a leading developer of wireless technologies for corporate networks based on Code Division Multiple Access (CDMA) technologies, has both short- and long-term benefits.

In the near term, the company said Exio's existing wireless technology would add mobility to Cisco's existing voice-over-IP (Internet Protocol) services. Over the long run, the acquisition will move along Cisco's development of a third-generation (3G) network, supporting multiple wireless standards, including GSM (Global System for Mobile Communications) and CDMA.

Under the deal, Cisco will issue $155 million of its common stock in exchange for all outstanding shares and options of Exio. Cisco will take a one-time charge of about 1 cent per share for purchased in-process research and development expenses.

The deal is expected to be completed in Cisco's third quarter.