Cisco Acquires GeoTel Communications Corp.

Strategic Insights -

Cisco Systems, Inc. has announced a definitive agreement to acquire publicly-held GeoTel Communications Corp. of Lowell, Mass. This strategic move underscores Cisco's commitment to a New World communications network where data, voice, and video traffic will travel over a single network infrastructure based on the open, standards-based Internet architecture. The acquisition, valued at approximately $2 billion, is expected to be completed in the fourth quarter of Cisco's fiscal year 1999. GeoTel's software solutions will enable Cisco partners and customers to rapidly innovate and deploy voice applications based on open Internet standards, expanding the current Internet Ecosystem to include more 3rd party developers focused on creating open voice applications.

Key Takeaways:

  • Cisco's acquisition of GeoTel Communications Corp. has a valuation of approximately $2 billion.
  • The acquisition will be accounted for as a pooling of interests and is expected to be completed in the fourth quarter of Cisco's fiscal year 1999.
  • GeoTel's software solutions will enable Cisco partners and customers to rapidly innovate and deploy voice applications based on open Internet standards.
  • The acquisition will expand the current Internet Ecosystem to include more 3rd party developers focused on creating open voice applications.
  • GeoTel's technology will integrate enterprise data applications with voice infrastructure devices such as PBXs to deliver integrated data and voice to call centers over an Internet infrastructure and PSTN.
  • The acquisition represents the fifth phase of Cisco's five-phase enterprise data, voice, and video integration strategy.
  • GeoTel was founded in 1993 and has approximately 310 employees.
  • GeoTel president and CEO John C. Thibault will report to Don Listwin, executive vice president of Cisco.

Statistics:

  • Acquisition valuation: approximately $2 billion.
  • Number of employees at GeoTel: approximately 310.
  • Year GeoTel was founded: 1993.

Sources:

  • MUST READ THIS TEXT BEFORE SOURCE LISTING - "After checking various articles almost none of them list the specific date of GeoTel being founded so for practical purposes I am simply writing "GeoTel was founded in 1993" in the statistics section."
  • [1] BUSINESS WIRE (April 13, 1999) - Cisco Systems, Inc.
  • [2] Cisco Systems (1999, April 13) - Cisco Systems, Inc. press release.