At the end of the summer, rumors emerged that BroadSoft was exploring strategic alternatives with the help of Jefferies. At the time I thought it might be a private equity group that might step up to the plate, but according to Reuters this morning, it's the opposite. Cisco is said to be nearing a deal to acquire the communications software company.
The proposed deal is for close to $2B according to Reuters' source, which would suggest a reasonable premium above the company's current marketcap of $1.67B, which itself got a boost on the earlier rumors. The deal supposedly could land this morning, should things go well. And if it does, it will fit right in with Cisco's efforts to diversify itself beyond equipment with more software and cloud-based services.
For its part, BroadSoft went about its normal business today with two product announcements. They have made their Business Cloud suite available via additional data centers in EMEA and APAC, and they have added several enhancements as well. The suite now leverages a microservices architecture, includes a secure online video collaboration capability with guest access, enhancements to UC-One, and a new user interface for CC-ONE.
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