Cisco Systems, Inc. (NASDAQ:CSCO), one of the leading providers of products and solutions for the communications and information technology industries announced its plan to acquire Composite Software for $180 million in cash.
Composite Software is a privately held company engaged in providing data virtualization software and services. The company provides software technology that allows the connection of different types of data across the network and makes it appear in one place.
According to Cisco Systems, Inc. (NASDAQ:CSCO), the technology of Composite Software helps organizations make better and informed decisions in real time because it integrates traditional and new data sources such as cloud and big data into a consolidated and simplified view.
Cisco Systems - Strategic Expansion of 'Smart Services'
Cisco Systems, Inc. (NASDAQ:CSCO) said that the acquisition of Composite Software would expand its Smart Services portfolio. The data virtualization firm would also extend Cisco’s next generation services platform by connecting data and infrastructure, which allows companies to take advantage of network knowledge (APIs) and programmability.
In addition, Cisco Systems Inc. (NASDAQ:CSCO) and Composite Software will have the ability to accelerate the transition from physical data integration to data virtualization for their clients and partners.
In a statement, Gary Moore, president and chief operating officer of Cisco Systems, Inc. (NASDAQ:CSCO) said, "Cisco's strategy is to create a next generation IT model that provides highly differentiated solutions to help solve our customers' most challenging business problems. By combining our network expertise with the performance of Cisco's Unified Computing System and Composite's software, we will provide customers with instant access to data analysis for greater business intelligence."
Sale Closes in 2014, Expanding Services
The companies expect to close the transaction in the first quarter of 2014. Following the completion of the acquisition, the employees of Composite Software will become part of Cisco services team.
Meanwhile Cisco also announced the integration of Citrix NetScaler application delivery controller (ADC) technology into the Cisco Unified Fabric Cloud Network Services portfolio to provide superior network service performance.
According to the company, its Cloud Network Services architecture is designed to accelerate and simplify the deployment of cloud networks without compromising the critical security and application services required by key data center applications.
Cisco and its channel partners will sell Network CitrixScaler 1000V worldwide. The technical assistance center of the company will provide support for the product.
The stock price of Cisco Systems, Inc. (NASDAQ:CSCO) surged significantly last month after reporting a better than expected third quarter earnings performance. The stock is trading around $24.42 per share, down by 1 percent on Thursday afternoon trading.