Cisco to buy FineGround

The deal is worth $70 million in cash and options, Cisco said. It is subject to regulatory approvals and is likely to close before July. FineGround, started in 2000, has 42 workers. It will be integrated with Cisco's security technology group, and its products will be sold through Cisco's sales channels.

Recently the networking gear maker announced the acquisition of Sipura Technology, a maker of Internet telephony gear.

FineGround, based in Campbell, Calif., makes gear designed to speed up, secure and monitor delivery of Web-based applications. The company said its technology is designed to enhance bandwidth efficiency and to decrease latency and server offload across networks.

FineGround's technology is similar to that of Peribit Networks and Redline Networks, which were both bought by Cisco rival Juniper Networks for a combined $500 million last month.

"This acquisition further enhances Cisco's strategy to converge application acceleration, security and a highly available network infrastructure seamlessly in the data center," Jayshree Ullal, general manager of security technology at Cisco, said in a statement. "FineGround augments Cisco's leadership in content and security products enabling customers to accelerate application response time and minimize costs."