Cisco Systems is back on the acquisition trail with the purchase of virtual private network (VPN) vendor Allegro Systems for $181 million in stock.

Allegro, which Cisco already has a minority stake in, makes technology that allows businesses to run a large number of simultaneous VPN connections. Its technology will be incorporated into Cisco's security and VPN portfolio.

The purchase is only Cisco's second in the last year, reflecting the slowdown in the networking market that has forced Cisco and other heavy hitters in the networking equipment market to post a string of poor financial results and slash jobs.

Cisco's other purchase this year was $150 million all-stock acquisition of optical networking firm AuroraNetics. ®

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Cisco Systems to Acquire Allegro Systems