(PressMediaWire) SAN JOSE, Calif., May 22, 2008 - Cisco® today announced it has
completed the purchase of San Jose-based Nuova Systems, a startup
focused on the development of next-generation products for the data
center market.
In August 2006, Cisco announced its initial investment in Nuova.
Prior to the acquisition, Nuova operated as a majority-owned subsidiary
of Cisco, which had invested $70 million and owned 80 percent of the
company. In conjunction with the investment, the companies entered into
a call-option agreement, which gave Cisco the right to purchase the
remaining 20 percent of Nuova stock. On April 8, 2008, Cisco announced
it would acquire the remaining portion of Nuova that it did not already
own.
The final purchase price is success-based with the total value
primarily determined by the revenue of Nuova products over three
measurement periods. The first measurement period will commence in
early fiscal year 2010, the second measurement period will commence in
late fiscal year 2010, and the third measurement period will commence
in mid fiscal year 2011. The minimum payout will be $10 million;
maximum payout will be $678 million.
The acquisition of Nuova supports Cisco's Data Center 3.0 vision by
allowing IT organizations to dynamically respond to changing business
demands through rapid provisioning of application and infrastructure
services from shared pools of consolidated compute, storage, and
network resources.
Nuova will operate as an independent business unit led by Luca
Cafiero, Prem Jain and Mario Mazzola reporting directly to John
Chambers, Cisco's CEO and chairman. Jain will join the development
council in Cisco's Development Organization.
About Cisco Systems
Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that
transforms how people connect, communicate and collaborate. Information
about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.
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SOURCE: CISCO
