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Cisco Snaps Starent Networks For $2.9 Billion

The acquisition comes amidst a growing trend amongst telecom companies worldwide which are increasingly relying on next-generation networks.

In its second acquisition for the month, Cisco asserted that it would pay $35 per share in cash to Starent, around 21 percent more than Monday closing price for the company.

Technology from Starent would help the wireless carriers understand the type of traffic that is passing through their networks, followed by speedy routing of the data received to various mobile devices.

Cisco further asserted that it had also penned contracts to retain the top management of Starent’s board, and had no intentions to trim down its worldwide workforce of 1,000.

Ned Hooper, Cisco’s chief strategy officer, praised Starent Networks by saying, “Obviously, they’ve been a great success story here in the Boston area”, and claimed that the acquisition of the company would help Cisco in meeting the new requirements for wireless data.

Starent Networks was founded around nine years back in 2000, with Ashraf Dahod and Anthony P. Schoener as its co-founders, and the company has fared incredibly well to become a global leader in developing telecom equipments for wireless networks.

Our Comments

Mergers and acquisitions are back with a bang. After Dell with Perot and T-Mobile and Orange, it seems that the technology market is going for another round of consolidation. Cisco is sitting on a cash casket with billions in there so, rather than just waiting for it to grow, it looks as if the network equipment manufacturer is looking to grow it even more.

Related Links

Cisco beefs up Bay State holdings with $2.9B Starent purchase

(Boston Herald)

Cisco to pay $2.9b for Starent Networks

(Boston Globe)

Cisco to buy wireless gear maker Starent for $2.9 billion

(Reuters)

Cisco to Buy Starent for $2.9 Billion for Mobile Gear

(Bloomberg)

Cisco pays $2.9 billion for Starent Networks

(San Jose Mercury News)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.