Cisco to Purchase American Internet

Cisco Systems Inc., the world’s largest networking company, agreed to buy American Internet Corp. for about $56 million in stock to gain access to technology that simplifies hooking up to the Internet. Whether Cisco would take on any debt wasn’t immediately known. Cisco, which is based in San Jose, also said it will incur a fiscal first-quarter after-tax charge of 3 to 6 cents a share for related research and development expenses. Cisco’s fiscal year ended in July. With American Internet’s Network Registrar and Access Registrar software products, Cisco plans to offer customers automatic Internet connections through set-top boxes and cable modems. Bob Brennan, chief executive of Bedford, Mass.-based American Internet, will continue to run the company, which has 50 employees. The purchase is expected to be completed by the beginning of October. Cisco, which makes 80% of the switches that link corporate computer networks, had $6.4 billion in sales last year. Cisco shares edged up 13 cents to close at $102.75 on the Nasdaq.