Cisco to pick up net phoning gear maker

Cisco Systems is to buy privately-held Sipura Technology, a maker of consumer products for internet phoning, for $68m in cash.

The networking equipment maker said that it plans to use Sipura's technology to integrate more voice features into products from its Linksys home-networking division. Linksys provides wireless and networking hardware for the home and home office, as well as small businesses. Cisco entered the consumer market in 2003 when it bought Linksys for $500m.

Voice over Internet Protocol technology allows calls to be made over a broadband connection instead of via a regular phone line. The consumer VoIP market is expected to grow rapidly over the next couple of years, as independent service providers, cable operators and traditional phone companies begin to offer services.

Cisco has already built some VoIP capabilities into its telephone adapters and wireless home routers. Most of this technology came from Sipura, the company said.

The Californian networking giant said it plans to use the Sipura acquisition to help develop more VoIP functionality and products for its Linksys home division.

Charles Giancarlo, Cisco's chief technology officer and president of the Linksys unit, said in a statement: "VoIP is a strategic segment for innovation and growth for Cisco and Linksys. Adding Sipura's technology reinforces our commitment to developing products in the consumer voice space."

The deal is expected to be completed by the end of July.

Marguerite Reardon writes for CNET News.com