Linksys Acquires VoIP Vendor

Acquisition signals the intention of Linksys and its parent, Cisco, to increase support for voice-over-IP in wireless equipment.

April 26, 2005

1 Min Read
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Linksys, a division of Cisco Systems that provides wireless LAN equipment for the home and small business market, is acquiring a vendor of voice-over-IP technology (VoIP), Cisco announced Tuesday.

The move signals Linksys' and Cisco's intention to expand their support for VoIP. The company said it is acquiring Sipura Technology for about $68 million and expects the acquisition to close by the end of July.

Linksys has released a variety of wireless routers and other equipment tuned to support VoIP services. Much of the technology built into those devices was provided by Sipura, according to the company. In a statement, Cisco noted that it expected VoIP to grow rapidly, particularly on the consumer side.

"VoIP is a strategic segment for innovation and growth for Cisco and Linksys, Charles Giancarlo, Cisco CTO and Cisco-Linksys president, said in a statement. "The acquisition of Sipura will augment Linksys' leading position in the rapidly growing VoIP market and is an example of Linksys' strategy to increase internal R&D capabilities in specific product categories."

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