It had been a few months since Cisco Systems (NASDAQ:CSCO, news, filings) acquired anything, so to correct the oversight they kicked off the second quarter by announcing their intention to buy Ubiquisys. The deal will bring key mobile technology aimed at small cell networks into Cisco's portfolio.
While we're not that congested just yet, wireless providers face a steady queue of hurdles over the next decade if they want to economically keep pace with growth in wireless data traffic. Spectrum alone will not save them, and there fore small cells and related technologies have been getting more and more attention.
Ubiquisys's products cover intelligent software for licensed 3G and LTE spectrum, which Cisco hopes to blend with its WiFi and other mobility products plus the stuff they recently acquired in the BroadHop and Intucell deals from January. With that cash hoard of theirs, Cisco is able to approach things from both inorganic and organic directions. But on this front, it's been the inorganic method that has taken front stage so far.
The purchase will cost $310M in cash, and is expected to close in Cisco's fourth quarter.
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