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Cisco To purchase home Networking firm Linksys For $500 Million | Killexams.com Resources

Linksys, based mostly in Irvine, Calif., has probably the most wide traces of routers and other machine used in domestic networks, which have grown increasingly established as excessive-velocity internet connections and households with a couple of laptop develop into ordinary.

"Fueled by buyer broadband adoption, the home networking house has experienced mass market acceptance,' John Chambers, Cisco's chief executive, said in a press release.

even though Chambers has been a vocal supporter of consumer broadband and has criticized delays within the rollout, Cisco has offered few products geared for the domestic. Cisco's routers and switches are often present in the returned rooms of massive companies and government businesses.

different enterprises, akin to Linksys and Netgear, have concentrated on buyers and small groups, introducing relatively within your means routers, switches, print servers and instant device to share web and different computing supplies amongst domestic or small office computer systems.

but that market indicates indications of taking off, analysts mentioned. Networking machine sales to small and home offices are expected to develop from $three.7 billion in 2002 to $7.5 billion in 2006, in keeping with information compiled by way of the Dell'Oro group, Synergy.

Cisco spoke of the acquisition, which has been authorized with the aid of each companies' boards, will dilute its fiscal 2004 seasoned forma earnings per share by no more than a penny. It is also area to approval by means of antitrust regulators.

Privately held Linksys can be operated as a division of Cisco. headquartered in 1988, it has 308 personnel.

Copyright © 2003 The linked Press. All rights reserved. The suggestions contained within the AP news document may additionally no longer be posted, broadcast, rewritten or redistributed without the prior written authority of The associated Press.


 

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