Cisco has entered an agreement to purchase communication software firm BroadSoft for $1.9 billion.
The tech giant announced today the buyout — which has already been approved by both the Cisco and BroadSoft boards of directors — is set to close in the first quarter of 2018.
“Acquisitions continue to be a core part of our innovation strategy and over the past two years have helped Cisco accelerate or enter areas such as IoT, application intelligence, AI, hyperconvergence and SD-WAN,” said Cisco corporate development vice-president Rob Salvagno. “With the addition of BroadSoft, we expect to accelerate the pace of innovation across our entire collaboration portfolio.”
The deal helps Cisco in its Internet of Things and cloud computing push. BroadSoft’s open interface and standards-based cloud voice and contact center solutions paired with Cisco’s meetings, hardware and services portfolio, will offer better solutions for business customers. The goal, Cisco said, is to provide a full suite of collaboration capabilities to “power the future of work.”
“Together, Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment,” Cisco Applications Business Group senior vice-president and general manager Rowan Trollope said. “We believe that our combined offers, from Cisco’s collaboration technology for enterprises to BroadSoft’s suite for small and medium businesses delivered through Service Providers will give customers more choice and flexibility.”
BroadSoft CEO Michael Tessler said he is excited about the deal.
“As businesses continue to move toward the cloud in search of simplicity and speed, joining Cisco will allow us to deliver best-in-class collaboration tools and services,” Tessler said. “BroadSoft’s hosted offerings, sold through the Service Providers and aimed at small and medium businesses, are highly complementary to Cisco’s on-premises and enterprise-centric HCS offerings. Together, we can inspire teams to create, collaborate and perform in ways never before imagined.”
BroadSoft employees will join Cisco’s unified communications technology group once the transaction has been completed early next year.