Cisco buys in convergence

Networking vendor Cisco has taken another step towards the voice and data market with the acquisition of Massachusetts-based American Internet (AIC).

Cisco, which already had an OEM agreement with the internet company, paid out $56 million worth of shares for AIC, stating that its software and management technology will be used in internet service provision.

AIC was the sixth company Cisco has acquired this year, following last month's $1.4 million stock swap for Summa Four, a switch provider.

The internet company, founded in 1995, will be incorporated into the networking vendor and AIC's 50 employees will continue to be headed up by the company's chief executive, Bob Brennan.

The acquisition, which is due to be finalised at the beginning of October, will boost Cisco's efforts to compete in the converged technology market and allow the vendor to provide equipment to telephone companies and ISPs.

Cisco has recently made a number of promotions. Bill Carrico, senior vice president for the SME market, took over from Howard Charney, who will act as a part-time advisor to Cisco president and chief executive John Chambers.

Charlie Giancarlo in the global alliance division, Kevin Kennedy from the service provider unit, human resources' Barbra Beck and Cliff Meltzer of the IOS technology and engineering operations, were all promoted to senior vice president level.