Cisco in $200m spending spree

Brace of acquisitions boosts networking giant?s technological expertise

Cisco Systems is spending nearly $200 million on two companies as consolidation in the networking market continues.

It is paying $156 million for voice and data compression provider Ardent Communications. The deal is expected to be completed later this month.

In a separate purchase, Cisco has bought Global Internet Software, a provider of Windows 95 network security products, for $40 million in cash.

Richard Bradley, channel director at Cisco, said: ?There is an increasing need for products to protect networks as smaller companies join the internet.?

He also saw a growth in business for data compression as files become ever larger with the addition of video and voice.

Bradley said the acquisitions would be integrated into Cisco?s Technology Group. Existing channel partners are expected to gain access to both companies? products.

Stuart Morrice, managing director of Global Internet distributor Peapod, claimed he had been been reassured that existing distribution agreements would remain. But he will be meeting with Cisco this week to discuss the details.

A representative of Global Internet distributor E92 Plus said she hoped Cisco would have the financial clout to further promote the business of distributors.

Bradley said Cisco continued to see itself as a venture capitalist, acquiring and investing in new technology as well as pursuing its own R&D, indicating that it was likely to make further purchases.