Cisco announces plan to buy Meraki for $1.2 Billion
(Best Syndication News) - Cisco (NASDAQ: CSCO) announced that they are planning to buy Meraki, a cloud-networking company. The privately held company offers midmarket clients a solution to network with central management from a cloud. Meraki Inc., has its headquarter in San Francisco, California and more offices in New York, London, and Mexico.
Cisco wants to add Meraki because the IT Industry can take advantage of the mobile-cloud. The purchase of Meraki will help Cisco offer more software-centric solutions to ease management of company networks. The cloud networking expansion will help Cisco address customers who have a mobile workforce.
Meraki provides a cloud networking solution that is scalable for mid-market businesses. With Meraki added to Cisco’s Unified Access platform, CSCO will be able to combine both wired and wireless networks. Policy and management would be incorporated together into one network infrastructure. Meraki’s technology includes Wi-Fi, switching, security and mobile device management that is all centrally controlled from the cloud. Meraki also has solutions for BYOD, guest networking, WAN optimization, application control, firewall, and more.
“The acquisition of Meraki enables Cisco to make simple, secure, cloud managed networks available to our global customer base of mid-sized businesses and enterprises,” said Rob Soderbery, senior vice president, Cisco Enterprise Networking Group. “These companies have the same IT needs as larger organizations, but without the resources to integrate complex IT solutions.”
“Meraki’s solution was built from the ground up optimized for cloud, with tremendous scale, and is already in use by thousands of customers to manage hundreds of thousands of devices.”
Cisco announced that they will pay around $1.2 billion in cash and retention-based incentives to purchase Meraki, which includes the complete business and operations. The transaction is expected to be completed during the second quarter of Cisco’s fiscal 2013 year. The acquisition must first meet regulatory review and meet customary closing conditions before it is completed.
By: Dave Reddy