Cisco to Buy TransMedia for $407 Million.

Cisco has signed a definitive agreement to buy TransMedia Communications, a privately-held company that makes IP (Internet protocol) gateways for third-generation networks. The deal, worth approximately $407 million, will help Cisco to offer migration from circuit-based networks to third-generation, packet-based networks to telecommunication carriers, the networking vendor said in a statement. Gateways transfer IP traffic from the PSTN (public switched telephone network) to the IP network and vice versa. Between 3.15 million and 3.85 million shares of Cisco_s common stock will be exchanged for outstanding shares and options of TransMedia, Cisco said. The respective boards of directors have approved the deal and although it is subject to various, unspecified closing conditions, the companies expect it to become final in the first quarter of Cisco_s next fiscal year. TransMedia, based in San Jose, Calif., has 66 employees and its current CEO Gwong-Yih Lee will now report to Brad Wurtz, VP and general manager of Cisco_s Multiservice-Switching Business Unit, according to statement.