08/23/04 - Source: Light Reading

SAN JOSE, Calif. -- Cisco Systems, Inc. (Nasdaq:CSCO), today announced a definitive agreement to acquire privately held P-Cube, Inc. of Sunnyvale, Calif. P-Cube is a leading developer of IP service control platforms, which can help service providers identify subscribers, classify applications, improve service performance and charge for multiple IP services without costly infrastructure upgrades. With this acquisition, Cisco will offer service providers additional capabilities to control and manage advanced IP services such as Voice-over-IP, interactive gaming, Video-on-Demand, and Peer-to-Peer, as well as create other differentiated offerings.

Under the terms of the agreement, Cisco will pay approximately $200 million in cash and options. The acquisition of P-Cube is subject to various standard closing conditions and is expected to close in the first quarter of Cisco's fiscal year 2005. In connection with the acquisition, Cisco expects to record a one time charge for purchased in-process research and development expenses not to exceed $0.01 per share.