The boards of directors at both companies have approved the deal, so the merger now has to clear antitrust regulations in the U.S. and abroad. Cisco said it expects the deal to close by the end of the fourth quarter.
The deal is the third acquisition in recent weeks for Cisco, which announced March 13 it would buy the file storage management company NeoPath Networks, and said March 5 it had purchased a share in Utah Street Networks, the operator of the social-networking site Tribe.net. Both companies were privately held, and Cisco did not announce the terms of the deals.
WebEx, based in Santa Clara, Calif., has 2,200 employees. It was founded in 1995 and went public in July 2000. The company reported $380 million in revenue in 2006.
WebEx has more than 2.2 million registered users in 85 countries, the company says. WebEx CEO Subrah Iyar and the WebEx business will continue to operate normally, and will report directly to Cisco's Giancarlo.
Ben Ames of the IDG News Service contributed to this report.