NEW YORK (AP) -- Cisco Systems Inc., the world's largest networking equipment maker, said Tuesday it plans to buy the remaining 20 percent interest in Nuova Systems it did not already own.
Santa Clara, Calif.-based Nuova, which was founded by former Cisco executives, develops products for data centers. Cisco bought an 80 percent stake for $50 million in August 2006 and said Tuesday it had invested a total of $70 million in Nuova.
Last April, Cisco expanded its funding commitment to Nuova and raised the maximum potential payout for the transaction to $678 million, based on the success of the company by 2011.
Cisco expects the acquisition to close in its fiscal fourth quarter, which ends in July.
Shares of San Jose, Calif.-based Cisco rose 2 cents to $23.96.