Network equipment maker Cisco Systems (Nasdaq: CSCO) said on Friday that it will acquire the social networking company, Five Across Inc., expanding beyond its core business of selling network routers and switches.
The privately-held company builds tools that help developers incorporate user-activity into websites, allowing companies to more effectively interact with their clients. The terms of the acquisition were not disclosed.
Cisco believes the network is the platform for organizations to connect with their constituents and for individuals to connect with each other, said Dan Scheinman, a senior vice president at Cisco.
With the acquisition of Five Across, Cisco is taking an important step towards helping its customers evolve their website experience into something more relevant and valuable to the end-user.
The 11 person firm, based in San Francisco will be integrated into the Cisco Media Solutions Group, pending the close of the transaction.
It is expected to close in the third quarter of Cisco's fiscal year 2007, ending April 28, 2007.
Shares of Cisco fell 1.03 percent in morning trading, falling 0.30 cents to $27.85 on the Nasdaq.