SAN JOSE — Cisco Systems Inc., the world's largest maker of computer-networking equipment, agreed to buy closely held Netiverse Inc. for about $210 million in stock to gain technology that speeds network connections.
The transaction is expected to close in Cisco's first quarter, which ends in October. Cisco already owns 20% of the company.
Cisco wants to better compete in the Web-traffic management market, which it has said should rise to $2 billion by 2003 from $500 million this year. Last month, it acquired ArrowPoint Communications Inc. for about $4.7 billion in stock. ArrowPoint's switches route requests for Web content or online transactions to the computer best able to handle the request.
The Netiverse acquisition would allow Cisco to offer additional capabilities for distributing Internet content and managing large amounts of Web traffic, Cisco said.