Cisco Will Acquire Granite In $220 Million Stock Deal
May 16, 2011
SAN JOSE, Calif. -- Computer-networking concern Cisco Systems Inc. said Tuesday it agreed to acquire privately held Granite Systems Inc. in a stock swap valued at $220 million. Cisco said it was drawn to the company by Granite's Gigabit Ethernet switching technologies, which can move data as fast as one billion bits a second. Granite, of Palo Alto, Calif., will become part of Cisco Systems' Workgroup Business unit, the company said. Cisco Systems, of San Jose, Calif., said the transaction is expected to be completed by October. The Granite systems acquisition comes not long after Cisco's takeover of StrataCom Inc., a network-technology company, which Cisco purchased in April in a $4 billion stock transaction. Cisco has been profiting from booming demand for networking products that allow far-flung company offices to talk to each other via computer links or video conferences. In Nasdaq Stock Market trading Tuesday, Cisco shares rose $1 to $53.75.
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