Cisco Systems Inc., the world's largest manufacturer of networking equipment to direct traffic on the Internet, has announced plans to purchase privately-held software developer P-Cube in a cash-and-options deal valued at $200 million.

Five-year-old P-Cube makes software to help service providers analyze and control network traffic. Cisco hopes to use the technology to encourage providers to offer additional capabilities to control and manage advanced Internet-based networks, such as voice-over Internet Protocol, video on demand, interactive gaming and peer-to-peer offerings.

For now, Cisco plans to continue selling P-Cube's software, which can monitor and meter such services, as stand-alone products.

Cisco products help facilitate the transfer of data across the Internet. The company will also work on incorporating P-Cube’s technology into its hardware and software, said Pankaj Patel, general manager of Cisco's Broadband Edge and Midrange Routing Business unit.

Patel estimates at least nine months before the San Jose-based computer-networking giant completes its software integration, and a year before its hardware is integrated with P-Cube's tools.

Sunnyvale, Calif. based P-Cube has 118 employees, the majority of whom will be offered positions at Cisco, and report to Patel.

The company is expected to close in its current fiscal first quarter (ending in October) with acquisition costs expected to lower Cisco's earnings by no more than a penny a share, the company said. The acquisition is Cisco's sixth this year.

Cisco shares ended Monday up 1.6 percent to $19.18.

Analysts polled by Thomson First Call expect Cisco to earn 21 cents a share in the first quarter.