Cisco nears deal to acquire BroadSoft: source

SAN FRANCISCO (Reuters) – Cisco Systems Inc, the world’s largest networking gear manufacturer, is nearing a deal to buy U.S. telecommunications software firm BroadSoft Inc for close to $ 2 billion, a person familiar with the matter said on Sunday.

A newly installed phone made by Cisco is shown in San Diego, California, U.S., April 17, 2017. REUTERS/Mike Blake

The deal, which comes after Reuters first reported in August that BroadSoft was exploring a sale, would allow Cisco to further diversify away from its stagnating switches and routers business by giving it a stronger foothold in selling unified communications software to big telecommunications firms.

If deal negotiations are completed successfully, Cisco’s agreement to buy BroadSoft could be announced as early as Monday, the source said, asking not to be identified because the deal discussions are confidential.

Cisco declined to comment. BroadSoft did not immediately return a request for comment. Bloomberg News reported earlier on Sunday that Cisco was close to a deal to acquire BroadSoft.

With its traditional business of making switches and routers seeing revenue declines, Cisco, like other legacy technology firms, has been focusing on high-growth areas such as security, the Internet of Things and cloud computing.

The BroadSoft deal would be Cisco’s second major acquisition this year following the $ 3.7 billion acquisition of privately-held AppDynamics Inc in March.

BroadSoft shares had closed at $ 54.90 on Friday, giving the company a market capitalization of $ 1.67 billion.

Based in Gaithersburg, Maryland, BroadSoft provides software and services that enable mobile, fixed-line and cable service providers to offer unified communications over their internet protocol networks.

BroadSoft has historically sold its products to large telecommunications companies such as Verizon Communications Inc and AT&T Inc, which then resell the software to their business customers.

BroadSoft has recently tried to revamp its business model to sell directly to these customers, a move that risks its relationships with its telecommunications partners, according to a Barclays Plc research report.

New York-based hedge fund P2 Capital Partners LLC owned a 4.6 percent stake in BroadSoft as of the end of June, according to Thomson Reuters data. P2 has often behaved as an activist shareholder and has even offered to buy companies in which it has invested.

Another BroadSoft shareholder with a history of acquisitions is buyout firm KKR & Co LP, which is BroadSoft’s 13th-largest shareholder, according to Thomson Reuters data.

Reporting by Liana B. Baker in San Francisco; editing by Diane Craft

Our Standards:The Thomson Reuters Trust Principles.

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Cisco Aggressively Works with Red Hat to Make Cloud Computing Services Cheaper

The partnership between two giants to make cloud computing services cheaper would unleash the power of Internet of Things (IoT).

CiscoGREATRESPONDER.COM – This was announced this weekend by Red hat that both Cisco Systems and Red Hat are aggressively working to enhance the security, performance, cost efficiency and reliability of the cloud computing services. This partnership was agreed upon recently to strengthen the concept of Internet of Things IoT in the domain of cloud computing services based on the OpenStack platform. It was further elaborated in the official announcement this week that the vendors are facing serious challenges in the handling of big data; and they are pursuing different strategies based on cloud computing services to make it easier to handle. The development of Internet of Things would be very helpful for these people to manage their big data in the cloud computing ecosystem.

This aggressive approach of both giants would enable the clients to avail the cloud computing services based OpenStack on very cheap rates. This collaborative approach is being undertaken to substantiate the dream of Cisco Systems related to the ‘Application Centric Infrastructure’ based on cloud environment.

redhat“Red Hat has a very large ecosystem and Cisco does as well, so, when you put those two ecosystems together, that provides a lot of opportunities from a vendor standpoint,” said the general manager of Cloud Product Strategy at Red Hat Company, Mr. Bryan Che in his official statement. He further added, “The partnership will allow Cisco to integrate its UCS gear with Red Hat’s OpenStack and open source distributions. OpenStack will be combined with Cisco’s UCS servers, Nexus switches and management software. The Cisco-Red Hat integrated systems will be available in different editions, including a starter edition for private clouds, an advanced edition for large private clouds and an advanced ACI edition for deploying scale-out clouds”.

It is very important to note that the dream project of Cisco systems based on Application Specific Infrastructure is a comprehensive approach to manage the big data and other applications in the cloud computing environment at very cheap rates. At present the complexity of the network to manage the big data and other company information is very high, and it requires huge money to manage. Although, Cisco is already helping its customer through two different approaches – Software Defined Networking SDN, and Network Function Virtualization NFV –, which costs them a bit higher than the anticipated cost.

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Cisco Systems to Invest $1 Billion in Cloud Computing Business

Cisco Systems to Invest $1 Billion in Cloud Computing Business

Cisco Systems to Invest $1 Billion in Cloud Computing Business

This investment in cloud computing business would focus on developing an inter-cloud platform that will be able to bridge multiple cloud systems open to the public.

GREATRESPONDER.COM – This was announced by the networking giant, Cisco Systems on Monday, March 24, 2014 that it is going to invest huge amount, as much as $1 billion in the domain of cloud computing business. This move of the company came after the extravagant investment from different IT giants, especially IBM in cloud computing during the last few months.

It was further elaborated about the breakup of the investment without quoting the specific amounts that, this investment will be used in different activities to expand the cloud computing business, such as – building new data centers, establishing partnerships with different telecom and IT service providers, development of inter-cloud platform based on the latest technologies, and last but not the least, developing the network of the specialized organizations in the domain of sales to sell and market the new products.

While talking about the technical matters related to the new idea of cloud computing business, the official statement elaborates that the inter-cloud platform, that Cisco is focusing on, would help the enterprise and the other customers to be able to link their cloud resources and services between multiple cloud computing service providers, such as – Google compute, Amazon Cloud, Microsoft Azure, and others. A huge money will be invested in the research and development of a new cloud computing technology to make it possible with enterprise grade security and reliability.

The core focus of the inter-cloud idea would be on developing a platform that allows customers to run their software applications simultaneously both in the public cloud and the internal company resources with very close management, geographic control and high level of security.

The senior vice president of cloud sales at Cisco Systems, Mr. Nick Earle said, in his statement, “We are vigorously pursuing our goal to establish a Star Alliance of technology companies, like the star alliance in airline services.” The Telestra Australia has already joined the star alliance as announced by Cisco a few days back. Nick further maintained that “The market makers, big ecosystems like IBM business applications, Verizon telecom and Accenture services would be targeted to join the star alliance partnership program to make it a bigger network in the domain of cloud computing business”.

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