Cisco buys GeoTel for $2 billion

Networking giant Cisco is to buy GeoTel, a routing software specialist, for $2 billion in shares. GEOTel has some real revenues...unlike many of takeover targets in this sector For 1998, the Massachussets company produced sales of $44.9 million in 1998 (1997: $18.6 million) and net income of $9 million, 45 per cent up on 1997. Interest income accounts for an unspecified chunk of the profits. GeoTel makes software that enables ISVs to deliver integrated voice and data to call centres. The technology is platform independent -- it works with any combination of voice and datacoms equipment. At the end of last week, Cisco bought its first two companies in 1999, Fibex and Sentient, as reported here. The deal is subject to US regulatory overview. Perhaps it is time the FTC looks a little closer at Cisco, which has been buying companies like crazy for years. ®