September 02, 2010 08:00 ET
Cisco Announces Intent to Acquire Arch Rock
Acquisition Complements Collaboration Between Cisco and Itron to Enable True IP-Standards-Based Smart-Metering Communications
SAN JOSE, CA--(Marketwire - September 2, 2010) - Cisco (NASDAQ: CSCO) today announced its intent to acquire privately held Arch Rock Corporation, a pioneer in Internet Protocol-based wireless network technology for smart-grid applications. Based in San Francisco, Arch Rock will accelerate Cisco's ability to facilitate the utility industry's transition to an open and interoperable smart grid by enabling Cisco to offer a comprehensive and highly secure advanced metering infrastructure solution that is fully IP and open-standards based.
"Arch Rock's wireless mesh technology enhances Cisco's IP-based, end-to-end smart-grid offerings," said Laura Ipsen, senior vice president and general manager of Cisco's Smart Grid business unit. "This acquisition further positions Cisco as a strategic partner to utilities working to better manage power supply and demand, improve the security and reliability of energy delivery, and optimize operational costs."
Arch Rock's technology is designed to enable utilities to connect smart meters and other distributed intelligent devices over a scalable, highly secure, multi-way wireless mesh network. The acquisition complements the recently announced strategic alliance between Itron and Cisco to develop solutions that enhance smart-metering technology.
Arch Rock brings to Cisco a proven team that has been a leader in the research and development of wireless networking for smart-grid applications. Upon the close of the acquisition, the Arch Rock team will become part of Cisco's industry-leading Smart Grid business unit. Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be complete in the second half of calendar year 2010.
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This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco from completing the acquisition, the impact of the combined company on relevant markets, Cisco's anticipated product development activities, and plans regarding Arch Rock personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of Arch Rock due to the uncertainty about the acquisition, the retention of employees of Arch Rock and the ability of Cisco to successfully integrate Arch Rock and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.