Cisco Systems has agreed to acquire HyNex Ltd of Shefayim, Israel, the company’s fourth acquisition in Israel. A subsidiary of Elbit, HyNex develops intelligent access devices for ATM network providers.
Cisco’s New World strategy allows service providers to deploy integrated data, voice and video services. HyNex products are optimized for international markets and will strengthen Cisco’s global service provider solution by offering a migration path from traditional, circuit switch networks to open, packet-based networks.
Under the terms of the agreement, approximately $127 million in Cisco common stock and cash will be exchanged for the assets, liabilities and stock options of HyNex. This will be accounted for as a purchase and is expected to be completed in the fourth quarter of Cisco’s fiscal year 2000. In connection with the acquisition, Cisco expects a one-time write-off of approximately $.01 per share for purchased in-process research and development expenses. The acquisition has been approved by the board of directors of each company.
HyNex products strengthen Cisco’s solution for service providers in international markets by accelerating the deployment of IP+ATM networks. This enables service providers to deliver an expanded range of data, voice and video services, and provide large enterprises with managed network services and service level agreements. HyNex products complement the Cisco 3800 family of access routers as a higher end network convergence product for customer premises. They support European (ETSI) and North American (ANSI) standards.
HyNex was founded in 1993. HyNex co-general managers Dotan Peleg and Haim Volinsky will report to Sylvia Summers-Dubrevil, group vice president of the Public Access Managed Network Services Group at Cisco.