Cisco strikes $1.9bn deal to buy BroadSoft
Cisco says its ninth acquisition of the year will boost its offering in unified communications and cloud services
Cisco Systems has announced a $1.9 billion deal to buy US telecoms software firm BroadSoft in order to boost its offering in unified communications and cloud services.
The deal will complement Cisco’s commitment to delivering next-generation collaboration experiences to workers across officers, desks, and mobile, on-premise or in the cloud, Cisco claimed.
"Together, Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment," said Rowan Trollope, senior vice president and general manager of Cisco's applications business group.
"We believe that our combined offers, from Cisco's collaboration technology for enterprises to BroadSoft's suite for small and medium businesses delivered through service providers will give customers more choice and flexibility."
Cisco has traditionally been a highly acquisitive company and this has continued in 2017, with data compiled by Bloomberg claiming this is the firm’s ninth acquisition of the year.
Listed BroadSoft is a technology firm offering solutions in the cloud PBX, unified communications, collaboration, and contact centre business. It serves service providers in more than 80 countries.
The deal, which Cisco said it expects to close in the first quarter of 2018, will boosts its UC offering, whilst also enhancing Cisco’s ability to tackle the transition of TDM lines to IP and cloud native solutions.
Once the deal is closed, BroadSoft will be integrated into Cisco’s unified communications technology group, which is led by VP and general manager Tom Puorro, and is part of Trollope’s applications division.
“We are excited about this transaction, which represents the culmination of a robust process undertaken by BroadSoft's board of directors to maximize shareholder value," said Michael Tessler, president and CEO, BroadSoft.
"As businesses continue to move toward the cloud in search of simplicity and speed, joining Cisco will allow us to deliver best-in-class collaboration tools and services. BroadSoft's hosted offerings, sold through the Service Providers and aimed at small and medium businesses, are highly complementary to Cisco's on-premises and enterprise-centric HCS offerings. Together, we can inspire teams to create, collaborate and perform in ways never before imagined."