Cisco Systems Buys Webex Communications For $3.2 Billion – Video Of Webex Demo

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(Best Syndication) Cisco Systems announced Thursday a “definitive agreement” to buy WebEx Communications for $3.2 billion. WebEx provides online conferencing and collaboration tools for small and medium business (See Video Demo Below).

Cisco will begin a tender offer for all outstanding shares of WebEx for $57 per share and will assume outstanding share-based awards. The acquisition of WebEx is expected to close in the fourth quarter of Cisco's fiscal year 2007. Cisco says they anticipate this transaction to be neutral to its non-GAAP FY2008 earnings.

Cisco says business collaboration will compliment their future strategy. Charles H. Giancarlo, Chief Development Officer at Cisco said "As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently. The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications.

“Cisco believes the network is a platform for all forms of communications and collaboration, and WebEx's technology and services portfolio complement Cisco's leadership in the Unified Communications and collaboration market, while providing Cisco with a new and unique business model to expand its presence in the fast-growing SMB market," Giancarlo added.

"Cisco and WebEx share a vision of web collaboration as a key to accelerating business processes and critical to durable competitive advantage," says Subrah S. Iyar, CEO of WebEx. "Cisco's global reach and customer focus will help us extend our core web collaboration applications and continue to broaden the services we offer through the WebEx Connect platform."

Webex is a subscription based service that allows companies to hold real-time or asynchronous data conferences over the Internet. Users can share documents and workspaces.

Both boards of directors have approved the acquisition, and the deal should go through after clearing both foreign and domestic antitrust hurdles. This is the third acquisition for Cisco in recent weeks. They announced on March 13th the purchase of the file storage management company NeoPath Networks. On March 5th the company said they would buy a share of Utah Street Networks Inc. Utah Street operates the social-networking site Tribe.net. Both companies were privately held. Cisco did not announce the terms of the deals.

By Best Syndication News

YouTube Video Demo of Webex Software

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