Cisco Systems / FineGround Networks

Network equipment maker Cisco Systems Inc. said Thursday it agreed to acquire FineGround Networks Inc. for $70 million in cash and options.

The privately held, Campbell, Calif.-based FineGround makes network equipment that improves end-user response times by up to 5 times, reduces application bandwidth usage by up to 90 percent, and reduces the load on servers by up to 90 percent, Cisco said.

Cisco expects to close the transaction, which is subject to regulatory approval, by the end of its fourth quarter, or July 30.

At closing, FineGround Chief Executive Nat Kausik will manage the operation as part of Cisco's Security Technology Group. FineGround has 42 employees.

"This acquisition further enhances Cisco's strategy to converge application acceleration, security and a highly available network infrastructure seamlessly in the data center," said Jayshree Ullal, general manager of Cisco's Security Technology Group, in a statement.

Cisco shares rose 13 cents to $19.75 in premarket activity.

(AP)