Cisco to acquire Class Data Systems for $50M

Cisco Systems Inc. will acquire privately held Class Data Systems of Israel in a deal worth about $50 million.

Class Data makes software for policy-based quality-of-service solutions in IP networks. That allows network administrators to classify and prioritize network data traffic.

Cisco officials said the technology would work with the San Jose, Calif., company's CiscoAssure Policy Networking initiative.

Cisco will take an after-tax charge of 2 cents to 4 cents per share in the fourth fiscal quarter related to the acquisition, which is expected to close in June. Class Data's employees will remain in Ra'anana, Israel, and become part of Cisco's Enterprise division. Arad Naveh, Class Data's president and CEO, will relocate to San Jose.

Cisco stock rose $1.38 to $75 in late-morning trading.

The company can be reached at www.cisco.com.