Cisco to Buy Net Phone Company

Cisco Systems Inc. said it will buy Komodo Technology Inc., a developer of devices that allow analog telephones to place calls over Internet protocol-based networks, for $175 million in stock. Terms of the agreement call for San Jose-based Cisco to issue common shares worth about $175 million in exchange for all outstanding shares and options of Komodo, a privately held company based in Los Gatos, Calif. Cisco made a 10.5% minority investment in Komodo in March. Cisco expects to take a charge of up to 2 cents a share as a result of the acquisition, its 14th so far this year. Cisco shares rose $2.06 to close at $68.13 on Nasdaq.