Cisco Systems to Invest $1 Billion for Stake in KPMG

Cisco Systems Inc., the leading maker of equipment that runs the Internet, plans to invest $1 billion in accounting and consulting firm KPMG to offer business functions online.

Cisco will get a stake of less than 20% in the consulting business of KPMG, the U.S. unit of No. 4 accounting firm KPMG International.

Under the agreement, to be announced today, KPMG will hire 4,000 engineers and other professionals over 18 months and build six technology centers. KPMG will maintain the services, using Cisco equipment, with marketing assistance by Cisco’s 6,000-person sales force.

Companies such as Cisco and KPMG seek to offer a package of services to help customers streamline business by putting functions such as financial reporting and accounting on the Internet.