Associated Press

SAN JOSE, Calif. – Cisco Systems (NASDAQ: CSCO), the world’s largest maker of networking equipment that employees 4,300 people in Research Triangle Park, said Thursday it agreed to buy privately-held CoreOptics Inc. for $99 million in cash and retention incentives.

CoreOptics designs signal processing technology for high-speed computer networks.

Cisco said that with the acquisition, it will be able to provide transmission technology to its Internet service provider customers so they can meet the demands of fast-growing Internet traffic driven by video, mobile and "cloud computing" services.

Cloud computing involves running applications over the Internet instead of installing them on individual hard drives. The information entered in the programs is stored in data centers run by third parties.

CoreOptics is based in San Jose, Calif., but the majority of its employees are based in Germany.

The deal is expected to close in the second half of the year.

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