8-KOther Events

CISCO SYSTEMS, INC. 8-K Report (Jul 12, 2001)

Filed July 12, 2001For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) announced on July 11, 2001, its agreement to acquire AuroraNetics, Inc. This acquisition is set to be an all-stock transaction, with Cisco valuing AuroraNetics at up to approximately $150 million. The valuation per share of Cisco's stock used for this transaction is based on the average of the closing prices over the ten trading days preceding July 10, 2001, which was $18.243. This move signifies Cisco's continued strategy of inorganic growth through acquisitions, likely aimed at bolstering its product portfolio or expanding its market reach in the then-current technology landscape. Investors should note that the total consideration is subject to a cap, and the use of stock in the acquisition means the actual value delivered to AuroraNetics shareholders will fluctuate with Cisco's stock price.

Key Highlights

  • 1Cisco Systems, Inc. agreed to acquire AuroraNetics, Inc.
  • 2The acquisition is an all-stock transaction.
  • 3The maximum value of the acquisition is approximately $150 million in Cisco stock.
  • 4The per-share stock price used for valuation is $18.243.
  • 5The per-share price is based on the average closing price over the ten trading days prior to July 10, 2001.
  • 6The press release announcing the acquisition is filed as an exhibit to this 8-K.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s agreement to acquire AuroraNetics, Inc. This is considered a material event requiring prompt disclosure to the public.

The acquisition is valued at up to $150 million and will be settled in Cisco stock. While this represents a significant investment, the exact impact will depend on the future performance of Cisco's stock and the integration of AuroraNetics' technology and operations.

The 8-K filing itself does not detail AuroraNetics' business. However, based on common industry practices at the time, acquiring a company like AuroraNetics would typically be to gain access to its technology, intellectual property, talent, or market position to enhance Cisco's existing product offerings or enter new market segments.

The acquisition price is determined by the value of Cisco's stock, capped at approximately $150 million. The specific per-share price used in the calculation for this valuation is $18.243, which is the average of Cisco's closing stock prices over the ten trading days leading up to three trading days before July 10, 2001.