February 22, 2018

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.

Other News

Trending Now

Liam Payne releases new song 'Bedroom Floor'
She said: "I've got the luxury of being able to spend time with my newborn child and I think I'm going to take that for what it is".

Zero auto and motorcycle growth from February 2018
The island city-state also vowed to invest heavily in public transportation to help the city's growing population get around. The annual vehicle growth rate for goods vehicles and buses will stay at 0.25% until the first quarter of 2021, LTA said.

The bank is always open for Andrew Wiggins
Carmelo Anthony and the OCT thought they already won the game with just five seconds left for the opponent to score back. E'Twaun Moore added 19 points, and Jrue Holiday and Ian Clark contributed 14 points apiece for the Pelicans.

Tuesday Apple Rumors: iPhone X Will Be Available for Walk-In Customers
He also expressed skepticism that Face ID would work the way it was supposed to, but CNBC's piece again doesn't say why. As a reminder , pre-orders for the 5.8-inch iPhone X begin this Friday, Oct. 27 at 12:01 a.m.

Tesla Building Electric Car Factory In China
According to the news report , Tesla would likely still face 25 percent import duties on its factory-produced cars sold in China . China typically requires global companies operating in its territory to form a joint venture with a local manufacturer.

Celtics' Hayward likely done for season
Gordon Hayward suffered a horrific leg injury in the Celtics' season opener against the Cavaliers Wednesday (AEDT) in Cleveland. Gordon Hayward's first season with the Boston Celtics is probably over after five minutes of game action.

Ewan McGregor splits from wife, was spotted kissing his Fargo co-star
Later on Sunday, People reported that McGregor and his wife Eve Mavrakis , split this past May after 22 years of marriage. The 46-year-old actor and 32-year-old Winstead played on-screen lovers in the third season of the FX crime drama Fargo .

George Clooney hopes Weinstein scandal will change society
She said on Twitter that she told Affleck that she was sexually abused by Weinstein , to which he said he had told Weinstein to stop doing that to her.

Director James Toback Accused of Sexual Harassment By Over 30 Women
Eight of the 12 movies Toback has directed were released after the Spy article; two were released after the Gawker articles. In several of the cases, Toback rubbed his genitals on the victims, then ejaculating either in his trousers , or on them.

Cristiano Ronaldo praises Baroka goalkeeper Oscarine Masuluke
SAFA confirmed how Masuluke's goal did against some of the stars from big clubs from around the world. The third nominee, Venezuela's Deyna Castellanos, got 20.47%.