US networking equipment maker Cisco Systems Inc (NASDAQ:CSCO) unveiled a USD1.2bn (EUR940.2m) agreement for the purchase of domestic cloud networking specialist Meraki Inc, as part of a strategy to increase the software-centric solutions in its networking portfolio.
The addition of Meraki brings scalable solution for midmarket businesses to Cisco, while enhancing its Unifed Access platform which simplifies IT operations and unite wired and wireless networks, the buyer said.
San Francisco-based Meraki offers Wi-Fi, switching, security and mobile device management centrally managed from the cloud. It combines a high-speed software development method with inside sales and channel model, which will form the buyer’s new Cloud Networking Group.
Apart from the agreed cash price, Cisco is also paying retention-based incentives as part of the deal for Meraki. It expects to wrap up the acquisition in the second quarter of its fiscal year 2013, pending regulatory approvals, among other conditions.