Consolidation in the networking sector was stepped up another gear last week when Cisco and Shiva both bought two more companies.
Networking giant Cisco has taken another bite of the acquisition cherry after it bought Wheelgroup for $124 million.
Wheelgroup, a privately owned company which develops technology for network security software, will receive about two million shares of Cisco common stock.
The deal gives Cisco access to security technology for catching hackers at switches and routers.
A Cisco representative said the company plans to use this technology in its forthcoming 'active audit' intrusion detection feature.
The Texas-based firm Wheelgroup, which is expected to keep all of its 75 employees, had been tipped as a candidate to float itself on the US stock exchange later this year.
The acquisition is likely to be complete by the middle of March, and Cisco will account for the purchase by taking a one-time charge.
Meanwhile, Shiva announced a $37 million cash deal for Isolation Systems, a Toronto-based networking specialist.
The company's network gateway, which began shipping in April 1997, integrates tunnelling, firewall capability, x.509 digital certificate authentication, encryption and key management into a single product.
Shiva said the acquisition was part of its plan to reinvent itself through the emerging VPM market. Shiva said it plans to take a one-off charge for the purchase in its first quarter which ends 31 March.
The acquisition is expected to be finalised by the end of next month.
Vendor giant fires love arrow at New Signature and SAP partner Edenhouse
CEO Klaus Schlichtherle says 'sizeable' deal close to being inked as distributor chases €1bn turnover
Deloitte has been appointed as administrator for the struggling distie
It's been announced that billionaire tech pioneer Paul Allen died on Monday from non-Hodgkin lymphoma