Cisco Systems has created a new subsidiary by taking a majority stake in Nuova Systems a Santa Clara Calif.based startup founded by former Cisco executives.
Cisco announced the move late Thursday. Nuova technology will complement Cisco's datacenter product portfolio which includes Catalyst switches MDS storage switches SFS server networking switches and application acceleration offerings.
San Jose Calif.based Cisco has committed technology plus $ million in funding to Nuova gaining an percent ownership share of the company. Nuova's founders include former Cisco Chief Development Officer Mario Mazzola. Cisco could contribute up to $ million in additional funding in the future.
The remaining percent interest will be held by Nuova employees. The company has employees.
As part of the agreement Cisco has the option to purchase the remaining interest in the Nuova subsidiary in late fiscal year or early fiscal year with a minimum potential payout of $ million and a maximum payout of $ million according to the company.
