Cisco Systems has agreed to buy American telecom software company BroadSoft in a deal worth close to $2 billion. The California-based company offered $55 per share, which represents a premium of 2 percent to BroadSoft’s last close.
"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 made eight acquisitions in total in 2017, according to Bloomberg. This includes the 3.7 billion acquisition of AppDynamics Inc, a privately held software leader in application and business performance monitoring.
The company has shifted its focus from networking hardware and telecommunications equipment to high-growth areas such as cloud computing and the Internet of Things (IoT). The deal between Cisco and BroadSoft is expected to close during the first quarter of 2018, the companies said in a statement.
BroadSoft are the industry leader in cloud unified communications. The company has a fully integrated portfolio of enterprise-ready cloud PBX, unified communications, team collaboration and contact center services. Upon completion of the deal, all BroadSoft employees will join Cisco’s unified communications technology group.
According to the ‘Global Unified Communication as a Service Market 2017-2021’ report, this market is forecast to grow at a CAGR of 25.3% during the forecast period. UCaaS is a cloud-based deployment model of unified communications (UC) technology, such as enterprise audio and video conferencing, hosted VoIP, and cloud private branch exchange (PBX).
The report points to the increased adoption of BYOD and mobility as a key market trend. It says “the increased focus on user preference, mobile device usage, and mobile workforce is accelerating the adoption of this [BYOD] model. Mobility is used as a primary technique to increase productivity, flexibility, agility, and cost-effectiveness of business organizations. The adoption of mobility in UC ensures faster communication in enterprises, reduces latency, and improves overall business efficiency.”
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