Cisco Systems expanded its wireless telephony offerings on Thursday when it agreed to acquire ExiO Communications Inc., a developer of wireless technology for corporate networks, in a deal worth $155 million in stock.
Privately held ExiO manufactures wireless office products, based on Code Division Multiple Access standards and IP, that can access voice, data, and the Internet. By acquiring ExiO, Cisco is trying to serve the in-building wireless market that requires products based on next-generation CDMA standards.
Cisco plans to exchange shares of its common stock, worth approximately $155 million, for all outstanding shares and options of ExiO. The acquisition, which is expected to be completed by late April, would be counted as a purchase. Cisco expects to bear a one-time charge of about a penny per share on an after-tax basis for purchasing ExiO research and product development while in process. The boards of directors of both company have approved the deal, but the closing is still subject to various conditions.
ExiO's 38 employees, including CEO Ki Hyun Joo, would join Cisco's enterprise wireless telephony business unit, which is a part of the new mobile wireless group in Cisco's service provider line of business.