Cisco Acquires Sipura

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Cisco Acquires Sipura


Big news. Cisco acquires Sipura, who has very popular VoIP ATA products along with other VoIP products. Sipura had developed quite a popular user community. Update - Greg Galizine has some insights on the Cisco acquisition of Sipura...

Cisco is acquiring Sipura Technology, a leader in consumer and small office / home office (SOHO) VoIP technology and a key technology provider for Linksys' line of VoIP networking devices. Sipura will provide Linksys with valuable technology, IP, customers, and an experienced team with extensive VoIP expertise, as well as provide the foundation for building Linksys internal R&D capabilities in voice, video and other markets.

This is Cisco's first acquisition for its Linksys division and follows Cisco's core strategy of using acquisitions to build new technologies and speed time-to-market for its products. The Sipura acquisition accelerates Linksys' leadership in the emerging high growth consumer and SOHO VoIP markets, provides continued competitive differentiation for its VoIP product offerings, and allows us to better serve our customers. When the acquistion closes, Sipura will be become part of Linksys.

Cisco Systems to Acquire Sipura Technology
First Acquisition for Linksys Division; Adds Experienced Team and VoIP Technology

SAN JOSE, Calif., April 26, 2005 Cisco Systems® today announced a definitive agreement to acquire privately-held Sipura Technology, Inc. This represents Cisco's first acquisition for its Linksys division, the leading provider of wireless and networking hardware for home, Small Office/Home Office (SOHO) and small business environments. Sipura is a leader in consumer voice over internet protocol (VoIP) technology and is a key technology provider for Linksys' current line of VoIP networking devices. In addition to Sipura's valuable technology and customer relationships, their experienced team with extensive VoIP expertise will help build a foundation for Linksys' internal research and development capabilities in voice, video and other markets.

Under the terms of the agreement, Cisco will pay approximately $68 million in cash and options for Sipura. The acquisition is subject to various standard closing conditions, including applicable regulatory approvals, and is expected to close in the fourth quarter of Cisco's fiscal year 2005 ending July 30, 2005.

Consumer VoIP is rapidly expanding as independent providers and incumbent telecom and cable operators bring VoIP offerings to consumers. Synergy Research Group, a leading market research firm, reports that today there are close to 8 million home users worldwide using VoIP to make phone calls over their broadband connections. By 2009, Synergy anticipates this number to grow to 58.9 million home users using VoIP to talk to friends and family around the world using broadband and VoIP technology.

"VoIP is a strategic segment for innovation and growth for Cisco and Linksys. The acquisition of Sipura will augment Linksys' leading position in the rapidly growing VoIP market and is an example of Linksys' strategy to increase internal R&D capabilities in specific product categories," said Charles Giancarlo, Cisco CTO and Cisco-Linksys president. "Adding Sipura's technology reinforces our commitment to developing products in the consumer voice space."

This acquisition follows Cisco's core strategy of using acquisitions to build new technologies and speed time-to-market for its products. The Sipura acquisition accelerates Linksys' leadership in the emerging high growth VoIP consumer and SOHO markets, provides continued competitive differentiation for its VoIP product offerings, and allows Linksys to better serve it customers.

Sipura has developed the technology incorporated in leading VoIP adapters (including those integrated into home routers and gateways) and a multi-line IP phone for the consumer and SOHO market. Sipura's technology is currently used by Linksys in some VoIP products, including certain analog telephone adapters and wired and wireless routers with phone ports. Sipura currently has relationships with regional and top-tier VoIP providers. Linksys will continue to work with those service providers, as well as use its traditional retail channels to target consumers and SOHO environments with Sipura's line of VoIP products.

Upon close of the transaction, Sipura will be integrated into Cisco's Linksys division, led by Senior Vice Presidents Janie and Victor Tsao. Sipura was founded in March 2003 and is headquartered in San Jose, Calif.



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