Cisco to buy cloud-networking start-up Meraki for $1.2 billion

Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $1.2 billion in cash as part of its cloud and networking strategy.

Cisco said the acquisition of Meraki, which was founded in 2006 by members of MIT’s Laboratory for Computer Science, is expected to close in the second quarter of Cisco’s 2013 fiscal year and is subject to regulatory approval.

Cisco’s second quarter runs until the end of January.

Meraki – funded by Sequoia Capital and Google Inc – offers Wi-Fi technology, switching, security and mobile device management from the cloud with a focus on mid-sized businesses.

“This is a very logical move for Cisco,” said ZK research analyst Zeus Kerravala.

He said the deal will allow Cisco to offer alternative solutions to traditional Wi-Fi deployment models like smaller competitors, such as Aruba Networks and Ruckus Wireless, which debuted on Friday.

“Cisco didn’t really have anything to counter that before,” Kerravala noted.

Meraki’s Chief Executive Sanjit Biswas said in a letter to employees posted on the company website that Cisco had approached the company several weeks ago.

The company’s founders had at first rejected the offer in favor of continuing Meraki’s strategy aimed at an initial public listing.

“After several weeks of consideration, we decided late last week that joining Cisco was the right path for Meraki,” Biswas said.

He also said that Meraki had achieved a $100 million bookings run rate, grown to 330 employees and had a positive cash flow.

Source: Yahoo

Leave a Reply

Related posts

Adesso Announces Tru-Form 150 Keyboard

Adesso Announces Tru-Form 150 Keyboard

The new Adesso Tru-Form 150 - 3-Color Illuminated Ergonomic keyboard is designed with ergonomic split key zones and a gentle slope for the natural positioning of hands, wrists, and forearms, increasing maximum comfort and extended use. With its eye-soothing backlit keys made for increased...

Apple sees 10 million iPhone 6 and 6 Plus sales in three days

Apple sees 10 million iPhone 6 and 6 Plus sales in three days

The new iPhones have been on sale for three days, which means it's time for Apple to announce how many devices it sold. Considering that the iPhone 5 hit five million sales in the same period, and the 5S and 5C earned nine million sales, it's no surprise to see that both new devices raked in...

Corsair Unleashes Corsair Gaming RGB Keyboards, RGB Mice, and Headsets

Corsair Unleashes Corsair Gaming RGB Keyboards, RGB Mice, and Headsets

http://www.youtube.com/watch?v=DaFqowf1mus Corsair®, a leader in PC hardware, today launched Corsair Gaming, a new division within the company dedicated to the elevation of PC gaming and the development of high-performance PC peripherals. Forged from Corsair’s engineering know-how and...