Acquisition Strengthen's Cisco's Service Provider Mobility Group
Acquisition Strengthen's Cisco's Service Provider Mobility Group by UCStrategies Staff
Ra'anana, Israel-based Intucell, a privately held maker of self-optimizing network software used to configure and manage carrier networks, is being purchased by Cisco for $475 million, it was announced yesterday.
The $475 million sum includes cash and retention-based incentives; this acquisition is the first for Cisco in this new calendar year.
In addition to spending more on Long-Term Evolution (LTE) 4G network infrastructure, carriers also seek self-optimizing network (SON) and other types of management platforms to strengthen cellular networks and how they respond to greater demands and support for mobile devices.
The senior vice president and general manager of Cisco's Service Provider Mobility Group, Kelly Ahuja, said: “The mobile network of the future must be able to scale intelligently to address growing and often predictable traffic patterns. Through the addition of Intucell's industry-leading SON technology, Cisco's service provider mobility portfolio provides operators with unparalleled network intelligence and the unique ability to not only accommodate exploding network traffic, but to profit from it.”
The acquisition is expected to close in the second quarter. Following that, employees at Intucell will merge with Cisco's Service Provider Mobility Group.
Recent Cisco acquisitions have been “tuck-ins” for the Cisco Service Provider Mobility Group; Cisco acquired policy control and service management specialist BroadHop in December and a maker of network planning, design and traffic tools for service providers, Cariden, in November.
It is expected that M&A will be rampant in the broader market for LTE/4G infrastructure tools, particularly as spending on LTE continues to increase. According to an ABI Research report from last year, LTE subscribers are predicted to reach 785 million by 2017 (up from 2012's 58 million). It was also projected in another report from IHS iSupply that spending on LTE infrastructure will be greater than 3.5G infrastructure for the first time this year.
Cisco has returned to its former tradition of announcing, at a frequent pace, its intention for acquiring around a dozen companies. (CY) Link