Cisco Systems to Acquire Altiga Networks and Compatible Systems
Extends VPN Product Portfolio for Enterprise and Service Provider Customers
San Jose, Calif., January 19, 2000 - Cisco Systems, Inc. today announced definitive agreements to
acquire privately-held Altiga Networks of Franklin, MA and Compatible Systems of Boulder, CO. Both
acquisitions enhance Cisco's New World VPN (Virtual Private Networks) offering by providing enterprise and
service provider customers with industry-leading remote access and extranet solutions.
Under the terms of the agreement, Cisco common stock worth an aggregate of approximately $567 million
will be exchanged for all outstanding shares, warrants and options of Altiga and Compatible. These
acquisitions will be accounted for as pooling of interests and are expected to close in the third quarter
of Cisco's fiscal year 2000. Both acquisitions have been approved by the board of directors of each
company and are subject to various closing conditions.
In the New World of communications, VPNs provide secure network connectivity on a public
infrastructure, extending geographic connectivity to telecommuters, mobile users and remote offices, as
well as customers, suppliers and partners. VPNs are fundamental for enterprises seeking to achieve global
reach, ubiquitous access and enable new business applications. VPNs provide several benefits to enterprise
customers including lower total cost of ownership and infrastructure investments as well as simplified
wide area network (WAN) operations. For service providers, VPNs represent an opportunity to differentiate
their business, increase revenues and reach new customers.
Altiga is a market leader in integrated VPN solutions for remote access applications. Its product suite
will complement Cisco's existing family of VPN routers and security appliances. Altiga's integrated VPN
client, remote access gateway and management solutions will extend Cisco's broad VPN portfolio, providing
enhanced VPN scalability, manageability and performance for enterprise edge applications including service
provider-managed remote access.
Compatible is a leading developer of standards-based, reliable and scalable VPN solutions for service
provider networks. Its industry-leading platform enables service providers to deploy robust, IPSec
architectures for VPN services.
Altiga was founded in 1998. The 76 employees will be led by Altiga CEO Mark Freitas and will become
part of the Enterprise Line of Business.
Compatible was founded in 1988. The 68 employees will be led by Compatible CEO Matt McConnell and will
become part of the Service Provider Line of Business.
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet.
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