Cisco Systems Inc. (NASDAQ:CSCO) is to acquire Broadsoft Inc. (NASDAQ:BSFT) in a deal valuing the cloud communications software group at about US$1.9bn net of cash.
The networking giant will pay US$55 for each Broadsoft share, the company said in a statement, a modest premium to Friday’s closing price of US$US$53.90.
The group said the deal is expected to close in the first quarter of 2018.
Cisco Systems buying BroadSoft for $1.9 billion cash https://t.co/z3gHnfGPSf pic.twitter.com/bLH4QWVteL
— Raybo34 (@Raybo34) 23 October 2017
Rowan Trollope, senior vice president and general manager of Cisco's applications business group, 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 shares were suspended on the announcement, but had gained almost 17% in pre-market trading to US$63 on rumours of the deal. Cisco shares were up 0.5% to US$34.43.