Cisco Seals Starent Networks Purchase

Cisco, the US-based multinational which specialises in providing networking and technological solutions, has announced the completion of its US$2.9 billion acquisition of Starent Networks, a leading supplier of internet protocol (IP) based mobile infrastructure solutions for mobile and converged carriers.

The services offered by Starent Networks allow service providers to balance their mobile infrastructures and monetise their investments by providing differentiated experiences.

The company also provides multimedia expertise, core network functions and the ability to manage access from any 2.5G, 3G and 4G radio network to a mobile operator's packet core network.

This acquisition will see Starent Networks being merged with Cisco’s new Mobile Internet Technology Group within the Service Provider Group; meanwhile, the former CEO and President of Starent Networks will become the senior vice president of this newly formed group and will report to Pankaj Patel who is the senior vice president and general manager of the Service Provider Group at Cisco.

As internet protocol enabled smartphones and other mobile devices are getting more popular with the technological advancement in the mobile internet domain, the sector has seen huge investments poured into research and development by several service providers as the global mobile data traffic is expected to increase by 200 percent by 2013.

Our Comments

Even if the deal appears to be an expensive one, it is very unlikely that it will dent Cisco's cash pot. The networking giant is sitting on $44 billion worth of current assets rising to more than $68 billion when long term ones are included.

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