Summary
Cisco Systems, Inc. (CSCO) announced a significant strategic move on November 18, 2005, entering into a definitive merger agreement to acquire Scientific-Atlanta, Inc. The acquisition, valued at $43.00 per share in cash, is set to make Scientific-Atlanta a wholly-owned subsidiary of Cisco. This transaction is expected to be taxable to Scientific-Atlanta shareholders and is subject to customary closing conditions, including shareholder approval and regulatory clearances in various jurisdictions. The acquisition of Scientific-Atlanta, a provider of digital content and communications solutions, signals Cisco's intent to expand its presence in the home networking and video delivery space. The integration of Scientific-Atlanta's technologies and customer base is anticipated to strengthen Cisco's service provider and enterprise offerings, potentially opening new revenue streams and enhancing its competitive position in the evolving telecommunications landscape.
Key Highlights
- 1Cisco Systems, Inc. to acquire Scientific-Atlanta, Inc. for $43.00 per share in cash.
- 2Scientific-Atlanta will become a wholly-owned subsidiary of Cisco upon completion of the merger.
- 3The transaction is structured as a merger agreement, with consummation subject to shareholder approval and regulatory clearances.
- 4Scientific-Atlanta's executive officers and directors have agreed to vote in favor of the merger.
- 5Cisco will assume outstanding Scientific-Atlanta stock options, converting them into options for Cisco common stock.
- 6The acquisition is taxable to Scientific-Atlanta shareholders.