Tech giant Cisco has agreed to buy cloud networking company Meraki.
The deal will be worth $1.2 billion (£755 million) and will be completed in cash during the second quarter of Cisco's 2013 fiscal year, which ends in January.
Meraki, which was founded in 2006 and funded by Google and Sequoia Capital, offers Wi-Fi, switching and mobile device management from the cloud amongst its services. It is targeted at mid-sized organisations and intends to make it easy for them to run a cloud network in the absence of a large IT department.
In a letter to Meraki employees, CEO Sanjit Biswas revealed that Cisco's initial offer was rejected but "thought to be the right path," after a period of reconsideration.
"While some things like our email addresses, etc. will change in our day-to-day operations, we will ensure the important things like our culture stay the same," stated Biswas. "In terms of what happens next: this week our job is the same as it was last week."
He also announced that the company grew from 120 to 330 employees and achieved a $100 million (£63 million) bookings run rate during the past year.
In a blog post, the deal is described by Cisco's VP of corporate development, Hilton Romanski, as "an important acquisition that addresses the rapidly occurring shift to cloud networking as a key part of Cisco's overall strategy."
Just a few days earlier, Cisco announced it will purchase datacentre management software company Cloupia for $125 million (£79 million).
According to Biswas, Meraki will become Cisco's new "Cloud Networking Group," when the deal closes.