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Cisco - FEATURED ARTICLES

May 30, 2013

Cisco News - Cisco Completes Acquisition of Ubiquisys

By Ed Silverstein, TMCnet Contributor

Cisco has completed the acquisition of Ubiquisys – a U.K.-based provider of 3G and long term evolution (LTE (News - Alert)) small cell technology. Cisco will pay about $310 million in cash and retention-based incentives to acquire the privately-held business and Ubiquisys employees will become part of the Cisco (News - Alert) Mobility Business Group.


The deal makes sense, industry analysts have said. Ubiquisys has a specialization in indoor small cell and intelligent software for 3G and LTE spectrum, while Cisco has a mobility portfolio and Wi-Fi specialization. Together, the pairing provides a “comprehensive small cell solution for service providers that supports the transition to next-generation radio access networks,” according to a recent statement from Cisco.

“After the acquisition, Cisco will benefit from Ubiquisys (News - Alert) software, expertise and knowledge that should boost Cisco’s mobile-carrier business in the future,” added Zacks Investment Research.

Moreover, Seeking Alpha reports that the deal “demonstrates the networking giant’s growing focus on wireless carriers and software-based networking technologies.”

“At the heart of this acquisition is Cisco’s bid to add more software-oriented service capabilities to its portfolio of networking products and thwart the risk of SDNs (Software-Defined Networks) commoditizing hardware completely,” Seeking Alpha went on to say. “Increasing focus on software and services will also help diversify Cisco’s revenue streams towards sources of a more recurring nature and mitigate the risks associated with macroeconomic uncertainty on hardware sales. In addition, we see Cisco attempting to win back share in the service provider market where its lead over competitors such as Juniper Networks (News - Alert) (JNPR) isn’t as commanding as in the enterprise market.”

Last year, Cisco acquired 11 companies. In January, it acquired Intucell for $475 million and has also acquired a cloud services management business SolveDirect.

“We believe that these acquisitions will broaden Cisco’s customer base and network offerings, providing the company with a significant competitive edge,” Zacks concluded in a statement.




Edited by Jamie Epstein



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