Sequoia Capital and Northgate Capital sell stake in Meraki to Cisco
Dec 21, 2012 (Datamonitor Financial Deals Tracker via COMTEX) --
Investment firms Sequoia Capital and Northgate Capital LLC have sold their stake in Meraki, Inc., a developer of cloud-hosted controller architectures, to Cisco Systems, Inc., a designer, manufacturer and seller of internet protocol (IP)-based networking and other products. All the entities are based in the US.
The divestment is a part of Cisco's acquisition of Meraki for a consideration of approximately $1,200 million in cash and retention-based incentives. Under the terms of the agreement, Cisco has acquired the entire business and operations of Meraki.
Pursuant to the acquisition, The Meraki team will become Cisco's Cloud Networking Group.
Announcement (November 18, 2012):
Sequoia Capital and Northgate Capital have agreed to sell their stake in Meraki to Cisco.
Brunswick Group LLP is acting as PR advisor to Cisco. The acquisition is expected to close in the second quarter of 2013.
Deal Type Venture Finance
Deal Status Completed: 2012-12-20
Target (Company) Meraki, Inc.
Acquirer (Company) Cisco Systems, Inc.
The acquisition complements and expands Cisco's strategy to offer more software centric solutions to simplify network management, help customers empower mobile workforces and generate new revenue opportunities for partners.
Meraki's cloud networking solutions will expand Cisco's network offerings by providing scalable solutions for midmarket businesses. The acquisition will also strengthen Cisco's unified access platform.
The acquisition enables Cisco to make simple, secure, cloud managed networks available to its global customer base of mid-sized businesses and enterprises.
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