Cisco acquires DSL specialist NetSpeed

Digital subscriber line technology, or xDSL, allows broadband transmission of data over standard copper phone lines. The market is expected to explode as companies become more wedded to networking and want to add capacity.

NetSpeed, of Austin, Texas, works with broadband DSL equipment; its products include client-side modems and routers as well as central office DSL access multiplexers deployed by service providers.

NetSpeed has joined Intel Corp. and others in an attempt to proliferate so-called "splitterless" DSL. NetSpeed's version, called EZ-DSL, eliminates the need for a service person to come to the customer site to help install the DSL.

Cisco, (CSCO), of San Jose, Calif., said it will take a charge after taxes of 13 to 18 cents per share for the acquisition. The deal has been approved by both boards of directors and is expected to be completed in the third quarter.

This is the second company involved in DSL technology that Cisco has acquired. Last July, it bought Dagaz Technologies, the DSL division of Integrated Network Corp.

Company officials said today's acquisition will allow Cisco to offer "end-to-end DSL," specifically to phone companies and other service providers.

International Data Corp., of Framingham, Mass., expects the market for asymmetric DSL equipment to hit $1.5 billion by 2000.

Cisco Systems Inc. announced today it has acquired DSL-client maker NetSpeed Inc. in a deal worth an estimated $236 million.

Digital subscriber line technology, or xDSL, allows broadband transmission of data over standard copper phone lines. The market is expected to explode as companies become more wedded to networking and want to add capacity.

NetSpeed, of Austin, Texas, works with broadband DSL equipment; its products include client-side modems and routers as well as central office DSL access multiplexers deployed by service providers.

NetSpeed has joined Intel Corp. and others in an attempt to proliferate so-called "splitterless" DSL. NetSpeed's version, called EZ-DSL, eliminates the need for a service person to come to the customer site to help install the DSL.

Cisco, (CSCO), of San Jose, Calif., said it will take a charge after taxes of 13 to 18 cents per share for the acquisition. The deal has been approved by both boards of directors and is expected to be completed in the third quarter.

This is the second company involved in DSL technology that Cisco has acquired. Last July, it bought Dagaz Technologies, the DSL division of Integrated Network Corp.

Company officials said today's acquisition will allow Cisco to offer "end-to-end DSL," specifically to phone companies and other service providers.

International Data Corp., of Framingham, Mass., expects the market for asymmetric DSL equipment to hit $1.5 billion by 2000.