Cisco announced that it will buy wireless networking startup Navini Networks for $330 million in a cash and stock deal expected in early 2008.
For the purchase, Cisco said that Navini will help the company compete in markets overseas that done already have extensive systems of fiber optic cables since WiMax is more financially suitable.
WiMax is recently approved as a new standard in Europe which has opened up the market, a technology that both IBM and AT&T support. WiMax has speeds up to 10 times faster than Wi-Fi.
Navini has developed new technology that improves WiMax range signals. WiMax is a telecommunications technology that provides faster wireless data over long distances. For example, a user can browse the Internet on a laptop computer without physically connecting the laptop to a router, hub or switch via an Ethernet cable.
The name WiMax was created by the WiMax Forum, which was formed in June 2001 to promote conformance and interoperability of the standard. The forum describes WiMax as “a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to cable and DSL.”
Cisco has development centers near NaviniÃ¯Â¿Â½s two locations in Texas and Bangalore and expects to make the deal final in the second quarter of 2008.