gpolit.com
gpolit.com November 25, 2017


Cisco Systems Announced an Agreement to Acquire BroadSoft for $1.9 billion

25 October 2017, 12:45 | Rufus Hill

Cisco to buy Gaithersburg's BroadSoft for $1.9B

Cisco to acquire BroadSoft in $1.9 billion deal

New York- Networking giant Cisco Systems has said that it has reached a deal to acquire United States software company BroadSoft for $1.9 billion paying $55 per share in cash.

On Monday, Cisco announced the acquisition of BroadSoft for about $1.9 billion, to penetrate further into software and cloud services. Additionally, the amount also marks more than a 25% premium on the price of BroadSoft shares before Reuters reported on August 30 that the company was seeking a suitor to acquire it.

On completion of the transaction, BroadSoft staff will join Cisco's Unified Communications Technology Group, led by general manager Tom Puorro, under the Applications Group led by Trollope, Rowan Trollope, senior vice president and general manager of Cisco's Applications Business Group. This includes products such as WebEx, which are installed on devices.

The acquisition of BroadSoft reinforces Cisco's commitment to Unified Communications and enhances its ability to address the millions of ageing TDM lines poised to transition to IP technology and cloud native solutions over the coming years.

The total value of the deal is $1.9 billion including debt, and it is expected to be closed during the first quarter of 2018. Meanwhile, Cisco has been placing all its attention on high-growth sectors like cloud computing, the Internet of Things and security.

It also offers software enabling customers to offer unified communications-as-a-service (UcaaS), either from their own platform or from Broadsoft's own BroadCloud software-as-a-service or platform-as-a-service delivery platforms. It has historically been offering its products to big telecom companies like AT&T and Verizon, which then resells the software to their clients.

How could BroadSoft help Cisco?

The BroadSoft deal is Cisco's second major acquisition this year following a $3.7 billion deal for privately held AppDynamics Inc in March.

Jefferies and Qatalyst Partners advised BroadSoft on the deal while Bank of America advised Cisco.

"With BroadSoft, Cisco will be able to cover a wider swath of the market", Drexel Hamilton analyst Brian White wrote in a note.



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