By Lisa Kerner
Charlotte, N.C., March 15 - Cisco Systems, Inc. entered into a definitive agreement to acquire WebEx Communications, Inc. via a $57-per-share cash tender offer in a deal worth $3.2 billion, or approximately $2.9 billion net of WebEx's existing cash balance.
The acquisition, which includes a $77 million termination fee, is expected to close in the fourth quarter of Cisco's fiscal year 2007, which ends in July.
Both the companies' boards of directors have approved the merger, according to an 8-K filing with the Securities and Exchange Commission.
"Cisco and WebEx share a vision of web collaboration as a key to accelerating business processes and critical to durable competitive advantage," WebEx chief executive officer Subrah S. Iyar said in a company news release.
"Cisco's global reach and customer focus will help us extend our core web collaboration applications and continue to broaden the services we offer through the WebEx Connect platform."
Cisco is an IP-network developer located in San Jose, Calif.
WebEx, based in Santa Clara, Calif., develops web collaboration services.
| Acquirer: | Cisco Systems, Inc.
|
| Target: | WebEx Communications, Inc.
|
| Transaction value: | $3.2 billion
|
| Payment per share: | $57.00
|
| Termination fee: | $77 million
|
| Announcement date: | March 15
|
| Expected closing: | By end of July
|
| Stock price for target: | Nasdaq: WEBX; $46.20 on March 14
|
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