Cisco (NASDAQ: CSCO) said it intends to acquire privately held Tail-f Systems, a leader in multi-vendor network service orchestration solutions for traditional and virtualized networks.
Tail-f´s products help service providers and enterprise IT organizations easily and cost-effectively implement applications, network services and solutions across networking devices. Headquartered in Stockholm, Sweden, Tail-f´s technology also helps reduce the time-to-market for network equipment vendors building equipment for agile, software-programmable networks.
The acquisition of Tail-f accelerates Cisco´s cloud virtualization strategy of delivering software that increases value to our customers´ applications and services, while supporting Cisco´s long-standing commitment to open standards, architectures, and multi-vendor environments.
Upon completion of the acquisition, Tail-f employees will join Cisco´s Cloud and Virtualization Group led by Gee Rittenhouse, vice president and general manager. Under the terms of the agreement, Cisco will pay approximately USD175m in cash and retention-based incentives in exchange for all shares of Tail-f. The acquisition of Tail-f is expected to be complete in the fourth quarter of fiscal year 2014, subject to customary closing conditions.
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