US tech-giant Cisco Systems, Inc. and Waterloo, Ontario-based PixStream Incorporated, which manufactures and markets network hardware and software solutions, announced on August 31, 2000 that an agreement had been reached on the sale of PixStream to Cisco in an all stock transaction valued at $554 million. The share-swap formula involves exchanging about 12.7 PixStream shares for each Cisco share. The deal represents the fifth largest acquisition of a private Canadian technology company.
At the close of the sale, the PixStream name will be dropped in favour of Cisco, however, PixStream’s marketing, production and R&D operations will remain in Waterloo. The deal is expected to close in November, 2000.
Gowling Lafleur Henderson LLP acted for PixStream on the transaction, and has represented the company since its inception in 1996. Thomas Hunter from the Waterloo office led the deal, with assistance from John Durdan (m&a and securities), Terry Williston (tax), Rose Johnson (m&a and due diligence), Ross Wells (employment) and Mike Bean (trademarks) of the Waterloo Office, Eric Nazzer (tax) and Alex MacFarlane (plan of arrangement and advocacy) of the Toronto office, and John Harris (patents), Bill Vanveen (competition), Henry Brown and Francois Baril of the Ottawa office. US counsel to PixStream was Shearman & Sterling with a team led by Brice T. Voran and Christopher J. Cummings of the firm’s Toronto office. Canadian counsel to Cisco was Fraser Milner Casgrain with a team led by Richard Scott and that included Christopher Steeves (tax), Christopher Turney and Matthew Hibbert (corporate). US counsel to Cisco was Brobeck, Phleger & Harrison LLP whose team was led by Therese Mrozek.