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. Last Updated: 07/27/2016

$2.15Bln Cisco Deal

PALO ALTO, California -- Cisco Systems Inc. agreed Monday to buy the optical networking systems business of Italy's Pirelli SpA for $2.15 billion in stock, according to a person familiar with the transaction.

The acquisition, by the biggest maker of equipment that powers the Internet, rounds out Cisco's options for sending phone, Internet and video traffic over fast optical networks.

Cisco, based in San Jose, California, also plans to invest $100 million in cash into Milan-based Pirelli's optical component and submarine optical transmission systems business, which lays undersea optical cables, this person said.

The optical systems business of Pirelli, which also makes calendars and automobile tires, had 1999 revenue of about $225 million, employs 701 people and remains profitable.