BroadHop Acquired in Cisco M&A Comeback
BroadHop Acquired in Cisco M&A Comeback by UCStrategies Staff
Following the announcement from Cisco executives that the company would make an M&A comeback, it has purchased and is in the process of purchasing 10 companies, last week adding an eleventh.
Denver-based BroadHop, a service management and policy control specialist for carrier networks is sought for acquisition by Cisco. It is hoped that the purchasing will allow for the integration into its Service Mobility Group, utilizing BroadHop's technology for mobile and fixed networks programs.
The vice president of corporate development, Hilton Romanshi, stated: “How does this benefit customers and end users directly? A service provider can integrate BroadHop technology to enable end users to purchase customized premium service packages. For example, if a consumer desires premium on-demand streaming, BroadHop technology allows the service provider to add value to and monetize this particular service. In return, the user is granted a high level of service and premium bandwidth to ensure the best possible experience.”
The financial terms of the deal remain undisclosed.
The vice president and general manager of Cisco Software and Applications Group, Shailesh Shukla, will welcome the BroadHop team under the Cisco Service Provider Networking Group.
BroadHop was founded in 2003, and was at this time already a service provider Wi-Fi partner, along with Hewlett-Packard, NEC, IBM and others, to Cisco and partners. According to Romanski, BroadHop's technology supports Cisco's Open Network Environment (ONE), the software-defined networking initiative, whose network programmability factors have been promoted by Cisco.
At Cisco's Financial Analyst Conference, John Chambers, the CEO of Cisco, told investors that the company would continue making purchases. Chambers stated that the initiative was part of the company's global restructuring, and stated that Cisco had stayed too far afield from M&A previously; this was an error and could in fact have bolstered company revenue and profitability by one percent.
This year, both minor and major deals have been made by Cisco; this includes a $5 billion purchase of NDS and $1.2 billion for Meraki, and smaller acquisitions such as Cloupia, vCider, and the recent Cariden have also been made. (CY) Link