London - Since Cisco had been scooping up smaller firms steadily for the past year and a half (see "Cisco's Security Acquisitions"), back at the beginning of July we told you to keep an eye on the Internet gear maker and privately held networking company Sheer Networks, as scuttlebutts had been circulating over a $120 million acquisition for the communications giant.

And what do you know? Today Cisco Systems (nasdaq: CSCO - news - people ), led by Chief Executive John T. Chambers, announced it had agreed to pay $97 million in cash and assumed options to acquire Sheer Networks. Cisco said the purchase price may be increased by up to $25 million if Sheer meets certain milestones after the acquisition closes, which should be in Cisco's fiscal 2006 first quarter. OK--so we were a couple of weeks and a couple of million out.

Sheer Networks, which develops operations support systems, will be Cisco's ninth acquisition in Israel if the deal goes ahead. The company also has employees in Cisco's home town of San Jose, Calif. More...