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Cisco buys minority stake in Parallels for undisclosed sum

Cisco has bought a small stake in Parallels, the Seattle-based software firm best known for its PC virtualisation software, the company has announced.

In a statement, Parallels revealed that networking equipment giant Cisco had acquired one per cent of the company. No financial details were disclosed, but the company insisted that the sale does not preclude a possible future initial public offering. As a result of stake sale, Cisco will receive a seat on Parallels’ board of directors.

“Parallels is committed to enabling our service provider customers to offer the most comprehensive, seamless and flexible set of cloud services for their SMB end-users,” said Parallels CEO Birger Steen.

“By strengthening our collaboration with Cisco, Parallels is focused on accelerating its growth and offering an end-to-end solution for cloud service providers,” he added.

“We are looking at all possible ways to ensure liquidity options: dividend payouts, IPO, mergers and acquisitions," said a press spokesperson for the company, which revealed recently that it plans to expand its cloud solutions arm by 20 - 26 per cent over the next three years.