Cisco to buy Scientific-Atlanta for $6.9B
A Reuters newswire article, va Yahoo! News, reports that:
Cisco Systems Inc. said on Friday it had agreed to buy Scientific-Atlanta Inc., a leading U.S. maker of cable television set-top boxes, for $6.9 billion in cash in a deal that would move the networking equipment giant more deeply into the consumer market.
Cisco will pay $43 a share, a 3.7 percent premium over Thursday's closing price of $41.45 on the New York Stock Exchange. Scientific-Atlanta stock has risen over 20 percent in the past month on speculation it would be bought.
Cisco said its net cost would be $5.3 billion, after subtracting Scientific-Atlanta's existing cash balance. It also plans to assume outstanding options, under the agreement.
The deal was approved by both boards, and is expected to close in the third quarter of Cisco's fiscal year 2006.
posted by Fergie @ 11/18/2005 05:44:00 AM
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