Today, I am pleased to announce Cisco's intent to acquire Leaba Semiconductor, a venture-backed fabless semiconductor company based in Israel. Leaba is a team with a strong and successful track record of designing leading edge networking semiconductors that provide innovative solutions to address significant infrastructure challenges.

This acquisition advances our innovation strategy, supports continued differentiation of Cisco products and delivers on our goal to provide best-in-class solutions for our customers. By combining Leaba's semiconductor expertise with the Cisco engineering team, we will accelerate our plans for Cisco's next generation product portfolio and bring new capabilities to the market faster.

Under the terms of the agreement, Cisco will pay$320M in cash and assumed equity awards, plus additional retention based incentives.

The Leaba team will report into Cisco's Core Hardware Group, led by Senior Vice President, Ravi Cherukuri.