Cisco Systems Inc. (CSCO), the world’s largest networking-equipment maker, agreed to buy Lightwire Inc. for $271 million to add optical connectivity technology used in high-speed networks.
Cisco will pay the sum in cash and retention-based incentives, according to a statement from the company today. The purchase of the Allentown, Pennsylvania-based company will probably be completed in the fiscal third quarter, Cisco said.
Closely held Lightwire’s technology would help Cisco’s customers to meet growing demand for video, data and so-called cloud services. Chief Executive Officer John Chambers has eliminated jobs and exited businesses in a bid to reverse the slide that knocked 11 percent off San Jose, California-based Cisco’s share price last year.
Cisco rose 0.2 percent to $20.28 in early trading at 8:39 a.m. New York time.
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