Newport Systems Deal Completed

The acquisition of Newport Systems Solutions by Cisco Systems Inc. of San Jose was completed Monday in an all-stock deal valued at $90.8 million.

Privately owned Newport Systems is the developer of a best-selling desktop computer networking software product. The company, based in Irvine, was formed six years ago.

Newport Systems sells the LAN2LAN product line through Novell Inc., the nation’s largest vendor of communications software. The companies said that relationship will continue after the acquisition, which was announced last month.

The value of the purchase was based on Monday’s $21.625 closing price for Cisco’s stock, which rose 75 cents for the day in Nasdaq trading.

A spokesman for Cisco said the company expects Newport Systems to increase in size and does not anticipate any layoffs at the company, which now employs 55 people. Newport Systems, which recently moved to Irvine from Newport Beach, will continue operating under its own name, the Cisco spokesman said.