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

Overclockers UK are going to be stocking the brand new CPU coolers from Phanteks

Overclockers UK are going to be stocking the brand new CPU coolers from Phanteks

Newcastle-Under-Lyme, Overclockers UK are proud to be introducing two new CPU coolers from Phanteks, with the success of their previous coolers they have now engineered two brand new models, the Phanteks PH-TC12LS and PH-TC14S. The Phanteks PH-TC12LS is a low profile CPU cooler, equipped...

QNAP Qnotes App Allows Users to Take Notes On-The-Go

QNAP Qnotes App Allows Users to Take Notes On-The-Go

QNAP® Systems, Inc. today announced the release of the Qnotes mobile app to enable users to take and share notes anywhere and anytime. In addition to synchronizing content with the Notes Station on a Turbo NAS, Qnotes allows offline note-taking as an easy-to-use tool to help users organize...

Shuttle Announces XPC Barebone SH97R6

Shuttle Announces XPC Barebone SH97R6

Based on the Intel H97 chipset, Shuttle today launches the XPC Barebone SH97R6, a solution measuring just 20 cm in height and designed for the rapid creation of customised Mini PCs. Motherboard, cooling system and power supply come pre-installed enabling speedy assembly. The chassis, case...