Cisco acquires Starent Networks for $2.9bn
By Robert Briel
October 14, 2009 09.29 UK
Cisco Systems has announced that it will acquire the telecoms infrastructure specialist Starent Networks for $2.9 billion (€1.9 billion) in cash.
Starent provides technology that facilitates the transfer of data from the Internet to mobile devices, like smart phones. It is known as a gateway or switching centre for date.
The deal follows Cisco’s agreement two weeks ago to acquire Tandberg, a video-conferencing equipment maker, for $3 billion. Both the Starent and Cisco boards approved the deal at $35 a share.
If shareholders and regulators approve, the take-over should close in the first half of 2010.
Starent Networks will become the new Mobile Internet Technology Group led by Starent CEO Ashraf Dahod, within Cisco’s Service Provider Business. Cisco expects the acquisition to add to earnings, excluding one-time items, from fiscal 2012.
Starent Networks was founded in 2000 and completed its initial public offering in 2007. The company is based in Tewksbury, Massachusetts and has approximately 1,000 employees worldwide. The company reported revenue of USD 254.1 million in 2008, up 74 percent from the prior year.