Two other undisclosed companies in which Cisco has invested may also be added to its portfolio soon.
Hammerhead makes software to improve billing, security and quality-of-service features for IP (Internet protocol) networks without degrading network performance.
Cisco said it plans to integrate Hammerhead technology into its IP aggregation portfolio consisting of cable, broadband and leased-line hardware and software.
Navarro develops ASIC (Application-Specific Integrated Circuit) components for the Ethernet market.
Cisco intends to improve its internal development of new, high-end ASICs with Navarro's technology, while improving Cisco's technology choices for designing next-generation Ethernet switching platforms.
The acquisitions are subject to various closing conditions and approvals, but the boards of directors for each company have approved the deals. Cisco expects the purchases to close in its fourth financial quarter.