Cisco today announced "a definitive agreement" to acquire privately held Linksys Group , a leading provider of wired and wireless products for consumer and SOHO (small office/home office) use.

Cisco's purchase essentially buys their way into the consumer/SOHO networking market with an all-stock deal valued at approximately $500M . The acquisition is expected to close in the fourth quarter of Cisco's fiscal year 2003.

Cisco says they intend to operate their acquisition as a division of Cisco, headed by Linksys CEO Victor Tsao reporting to Charlie Giancarlo , Sr. Vice President and General Manager, Product Development. Products will continue to be sold under the Linksys brand through its existing retail, distributor and e-commerce channels. In addition, Linksys will have access to Cisco's sales infrastructure to address international markets and the service provider channel.