Cisco is continuing to expand its portfolio by way of acquisitions. On Oct. 23 the networking giant announced its intention to acquire cloud collaboration vendor BroadSoft, in a deal valued at $1.9 billion.
Under the terms of the proposed acquisition, Cisco will pay $55 per BroadSoft share, with the deal expected to close in the first quarter of calendar 2018.
"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," Michael Tessler, president and CEO, BroadSoft stated. "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."
BroadSoft's software portfolio includes a cloud PBX, unified communications, team collaboration, contact center and business app integration services.
"Together, Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment," Rowan Trollope, senior vice president and general manager of Cisco's Applications Business Group, stated. "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."
Coincidentally, BroadSoft is also kicking off its annual user conference today, called BroadSoft Connections, making multiple product announcements. Among the new services announced at the conference is the BroadSoft Meet secure online meeting room service.
"Our objective with BroadSoft Business is to provide a comprehensive offering - from telephony to high-quality meetings to document sharing - to meet the needs of all market segments," Tessler stated. "While other companies are just now talking about how to integrate UC with team collaboration platforms, the BroadSoft Business application suite is already delivering on our promise of complete business productivity."
The BroadSoft portfolio is seen by Cisco as being complementary to its existing capabilities. Rob Salvagno, head of corporate development at Cisco commented that collaboration is the first step to business digitization and BroadSoft has partnerships with over 450 telecom carriers in 80 countries – including 25 of the top 30 globally – to 19+ million BroadSoft business subscribers.
"BroadSoft’s portfolio is complementary to our existing on premises and enterprise-centric Hosted Collaboration Solutions (HCS), as well as Cisco’s overall cloud investment strategy," Salvagno wrote.
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.