Cisco Systems said today it is to acquire the online meeting company WebEx Communications for about $3.2 billion in cash.
Cisco, the leading maker of routers and switches that direct data over computer networks, said it will pay $57 per share of WebEx.
That represents a 23 per cent premium over WebEx's closing price of $46.20 last night on the Nasdaq Stock Market.
Shares of WebEx soared $11.21, or more than 24 per cent, to $57.41 in early trading on the Nasdaq Stock Market. Cisco shares lost 4 cents to $25.81 on the same exchange.
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Cisco said the acquisition has been approved by its board and is expected to close in the fourth quarter of fiscal 2007.