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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.