TMCnet News
Consortium of investors to sell CoreOptics to CiscoMay 25, 2010 (Datamonitor Financial Deals Tracker via COMTEX) -- A consortium of investors has agreed to sell CoreOptics, Inc., a designer of digital signal processing (DSP) solutions for high-speed optical networking applications, to Cisco Systems, Inc., a designer and manufacturer of networking equipment for the communications and information technology (IT) sector. CoreOptics and Cisco Systems are based in the US. The transaction is valued at approximately $99 million in cash and retention-based incentives. The consortium includes Gimv NV, Crescendo Venture Management, LLP., TVM Capital GmbH, High Tech Private Equity GmbH, Atila Ventures/ETV Beteiligungs, Quest for Growth NV and T-Com Venture Fund. Brunswick Group is acting as PR advisor to Cisco. The transaction is expected to close in the second half of the 2010. Deal Value (US$ Million) 99 Deal Type Venture Finance Sub-Category Exit Deal Status Announced: 2010-05-20 Deal Participants Target (Company) CoreOptics, Inc. Acquirer (Company) Cisco Systems, Inc. Deal Rationale The acquisition will expand Cisco's optical presence in Europe through an expansion of its existing European operations in Monza, Italy. It will also enable Cisco to equip service provider customers with highly advanced 100 gigabits per second (Gbps) transmission technology to scale their networks to meet the demands of Internet Protocol traffic driven by video, mobility and cloud services. |