Cisco buys Webex for a load of dosh

CISCO SYSTEMS has revealed that it will be acquiring web conferencing service provider WebEx Communications for around $3.2 billion - that's $57 per share.

Both the Cisco and WebEx boards have approved the deal, which is expected to close officially during Cisco's fiscal fourth quarter. WebEx, founded in 1995, runs a subscription service allowing businesses to host real-time conferences and share files online.

It should be a health acquisition for Cisco, WebEx having reported a revenue of $48.6 million in 2006 alone. Development officer at Cisco Charlie Giancarlo reckons that WebEx's product fits well with Cisco's current offerings and strategies - going on to say that the small and medium business market represents one of the "fastest and consistently growing" areas for the company.

After the announcement, WebEx shares had shot up by 23% to $56.71 on the Nasdaq market, while Cisco shares dropped 0.2% to $25.80. µ