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Terayon Communications Systems Inc. is stealing a page from the Cisco Systems acquisition storybook.
The Santa Clara-based firm is expanding beyond its niche as the No. 2 supplier, behind Motorola, of high-speed cable modems into fullspectrum broadband equipment. In that niche, it will compete for the first time with heavyweight Cisco Systems Inc.
This week, Terayon closed on a $164 million stock purchase of Fremontbased Mainsail Networks. The acquisition, Terayon's eighth in the past year, is raising eyebrows on Wall Street.
"We view the acquisition as another step in the company's continued migration from a cable modem pure play to an...