Wednesday, March 14, 2007

Cisco to Acquire WebEx for Collaboration Service

Cisco Systems announced plans to acquire WebEx, a leading provider on online meetings and collaboration services, for $3.2 billion in cash. The acquisition will mark Cisco entrance into the market for business communication services. WebEx provides web conferencing, video conferencing, online seminars and other collaboration services.

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

More than 3.5 million people use WebEx every month to communicate and collaborate online.

WebEx was founded in 1995 and held its Initial Public Offering (IPO) in July 2000. The company has close to 2200 employees. For FY2006, which ended December 31, 2006, WebEx reported revenues of $380 million.

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