Cisco systems, Inc. (NASDAQ:CSCO) a world wide leader in networking, has announced plans to buy Cariden Technologies, a Sunnyvale, California based network planning, design, and traffic management software company for about $141 million in cash.
According to Cisco Systems, Inc. (NASDAQ:CSCO), Caridenwill be integrated into Cisco's service provider networking group unit, which provides service optimization to the telecom sector that includes Verizon Communications Inc. (NYSE:VZ), Telecom, SingTel, and Deutsche in order to ensure smooth network performance.
“The Cariden acquisition reinforces Cisco’s commitment to offering service providers the technologies they need to optimize and monetize their networks, and ultimately grow their businesses,” said Surya Panditi, senior vice president and general manager of Cisco’s Service Provider Networking Group.
Upon closing the deal, Cariden employees will now report to Mr. Shailesh Shukla, vice president and general manager of the company's software and applications group.
Earlier this month, on their official newsroom, Cisco Systems, Inc. (NASDAQ:CSCO) announced its intention to buy a privately held cloud networking company called Meraki, as part of its cloud and networking strategy, for a sum of $1.2 billion in cash.
"Given the widespread convergence of IP and optical networks, Cariden's technology will help carriers more efficiently manage bandwidth, network traffic, and intelligence," adds Surya Panditi.
Expressing her views about company's vision to lead the market transition in networking world, Panditi adds, "This acquisition signals the next phase in Cisco’s packet and optical convergence strategy, and further strengthens our ability to lead this market transition in networking.”
With another acquisition in the month of November, this announcement has moved Cisco's shares slightly up at $18.91 in the pre-market trading, showing a hike of 0.53%.
Having bought Cloupia for $125 million in November, and Meraki for $1.2 billion in the same month, the Cariden purchase marks it as Cisco's third major acquisition in November.
As part of the the terms of the agreement, Cisco Systems, Inc. (NASDAQ:CSCO) will pay approximately $141 million in cash and retention-based incentives in exchange for all shares of Cariden and the deal is likely to close by the second quarter of year 2013.