Cisco to Acquire PipeLinks for $126 Million

Cisco Systems Inc., the top maker of computer-networking equipment, agreed to buy closely held PipeLinks Inc. for $126 million in stock, giving San Jose-based Cisco the technology to offer some new services to its customers. The company had net income of 43 cents a share a year earlier. PipeLinks, also based in San Jose, makes routers that allow networks to offer voice and data services at the same time. Adding this technology would give Cisco new services, such as managed Internet access. Cisco has held a 30% stake in PipeLinks since last year. Cisco shares fell $1.50 to close at $78.25 on Nasdaq.