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Cisco to acquire chip start-up Spans Logic

Mountain View-based start-up targeted for processor technology that improves network efficiency.

Cisco Systems said Wednesday it plans to acquire Spans Logic, a start-up specializing in chips that speed up network processing.

With the purchase, Cisco said, it hopes to improve the efficiency of the network architecture products it manufactures and markets to business clients. By embedding Spans Logic's processor technology, which enhances the speed at which data packets are processed over a network, Cisco aims to better keep its switch platforms up to par in the rapidly evolving world of networking and improve traffic efficiency by reducing bottlenecks.

Spans Logic, a fabless chip company based in Mountain View, Calif., was founded in 2004 and has 14 employees. According to its Web site, the privately held company is financed by Crescendo Ventures and ATA Ventures. Upon its acquisition, Spans Logic will become part of Cisco's Data Center Business Unit.

Financial terms of the acquisition were not disclosed, but Cisco expects the deal to close in its fiscal third quarter, which ends April 28.

The acquisition-friendly Cisco made headlines earlier this month when it announced a $3.2 billion deal to purchase online conference service provider WebEx.