Cisco buys content acceleration firm in $210 million deal

Cisco dug into its war chest today, picking up content acceleration provider Netiverse in a deal worth roughly $210 million.

Through the acquisition, Cisco hopes to broaden its portfolio of network products for delivering faster Web content.

Speeding up content delivery has been high on Cisco's list of priorities. The network giant last week shipped Web switch technology acquired from ArrowPoint.

As part of the deal, Cisco will exchange $210 million in common stock for outstanding shares and options of privately held Netiverse, in which Cisco holds a 20 percent stake. Cisco expects to conclude the transaction during its fiscal 2001 first quarter and write off 2 cents a share for in-process research and development.

Cisco plans to integrate Netiverse's technology into existing content-networking products.

Founded last year, San Jose, Calif.-based Netiverse will become part of Cisco's Workgroup Business Unit. Gururaj Singh, chief executive of Netiverse, which currently employs 34 people, will stay on board the new subsidiary.