Cisco Systems came out the winner this week for the purchase of Procket Networks on Thursday. Earlier this week two companies Cisco Systems and Foundry Networks where competing to buy Procket Networks. Procket makes high-end routers that are used for shutting traffic across the internet. Its no surprise why Cisco wanted to get this company for a deal worth $89 million.
Cisco Systems is buying the assets of start-up Procket Networks in a deal worth $89 million, the companies said Thursday.
Procket put itself up for sale last week, marking a steep decline from its launch in 1999 as one of the most highly valued telecommunications start-ups in the United States. Cisco said it will pay cash for select assets of Procket, including its intellectual property, and will hire a majority of its engineers. The engineers will become part of Ciscos Routing Technology Group under senior vice presidents Prem Jain and Mike Volpi.
The deal is subject to various closing conditions and regulatory approvals. It is expected to close in Ciscos current quarter. Procket makes routers for controlling Internet traffic and had targeted the high-end market, positioning itself against companies like Cisco and Juniper Networks. While the company had launched with well-respected founders, it only signed on a few customers, the most notable being NTT in Japan.
News source: C|Net News.com