Cisco Systems, Inc. (NASDAQ:CSCO) has announced that it bought the Israeli company Intucell for $475 million. Intucell develops software which helps mobile carriers handle their networks in real-time. The deal is expected to be finalized in the third quarter of Cisco’s 2013 fiscal year. The deal is the latest in Cisco’s efforts to enhance its offerings. Last week the company initiated an equity investment in the cloud company Parallels.
By acquiring Intucell, Cisco Systems, Inc. (NASDAQ:CSCO) is able to add network intelligence to its products. The company said the acquisition will also help it give mobile operators “the unique ability to not only accommodate exploding network traffic, but to profit from it.” Cisco Systems, Inc. (NASDAQ:CSCO) will acquire all of Intucell, including its facility and employees.
According to EWeek, Intucell’s software is designed to automatically adjust mobile networks according to current conditions. The company works with its partners and mobile operators to start all deployments with a trial in one part of the network and then rolls them out to commercial deployment, which involves the sale of licenses for operators to install Intucell’s technology in their network.
Under the deal Cisco will pay $475 million in cash and incentives to the employees of Intucell to get them to stay with the company through the acquisition. Reports indicate that Cisco has acquired more than 150 different companies in the last two decades, and the company’s CEO has said that they are looking for ways to increase the security products they offer.
Shares of Cisco Systems, Inc. (NASDAQ:CSCO) fell almost 1 percent in trading on Wednesday, failing to receive any sort of boost from news of the acquisition. The company’s next earnings report is due Feb. 13.