Cisco to Buy Linksys for $500 Million
Move marks Cisco's first foray into the burgeoning market for wired and wireless networking gear for consumers and SOHO users.Officials of Cisco Systems Inc. said today they plan to buy home and small office networking vendor The Linksys Group Inc. of Irvine, Calif. The move marks Ciscos first foray into the burgeoning market for wired and wireless networking gear for consumers and SOHO (small office/home office) users. According to officials, Cisco will issue common stock worth $500 million to acquire Linksys.
"Fueled by consumer broadband adoption, the home networking space has experienced mass market acceptance. Linksys has captured a strong position in this growing market by developing an extensive, easy-to-use product line for the home and small office," said Cisco President and CEO John Chambers in a statement. "This acquisition is a solid example of Ciscos strategy to broaden its end-to-end portfolio of network solutions into high-growth markets such as wireless, voice-over-IP and storage area networking."