Cisco To Acquire Network Management Vendor for $97M

Sheer Networks&' Dynamic Network Abstraction technology makes complex networks transparent and accessible to a broad range of management applications, according to a statement from Cisco. The San Jose, Calif.-based vendor plans to use the technology to create device, network and service-level management applications that work across multivendor networks. Cisco also intends to tap standards-based APIs to enable other hardware and software vendors to better interoperate with the Cisco applications, according to the statement.

The price tag for the proposed $97 million deal, scheduled to close in the first quarter of Cisco&'s fiscal 2006, which begins Aug. 1, could be increased by as much as $25 million pending the outcome of attempts to meet development and product milestones after the close.

After the close of the acquisition, the Sheer Networks team will report into Cisco&'s Network Management Technology Group, headed by Senior Vice President Cliff Meltzer.

San Jose-based Sheer Networks was founded in 1999 and has 100 employees. The acquisition is Cisco&'s eighth this year.