New York Oct 24 (IANS) Networking giant Cisco Systems has said that it has reached a deal to acquire US software company BroadSoft for $1.9 billion paying $55 per share in cash.
Shares of BroadSoft rose 1.41 per cent to $54.675 in early trading after the announcement while Cisco s stock gained 0.96 per cent to trade at $34.575 per share Xinhua reported on Monday.
The acquisition was expected to close during the first quarter of 2018. Upon completion of the transaction BroadSoft employees will join Cisco s Unified Communications Technology Group.
Analysts said the deal allows Cisco to further diversify away from its stagnating switches and routers business by giving it a stronger foothold in selling unified communications software to big telecommunications firms according to CNBC.
Cisco CEO Chuck Robbins said on Monday the deal will help Cisco s enterprise clients and small businesses connect better with consumers.
"Every customer when they think about their digital strategies they think about how they interact with their customers " Robbins was quoted as saying.
"This acquisition of BroadSoft actually gives us the most comprehensive set of collaboration solutions for our customers " he added.
--IANS
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