Cisco has just acquired a company called Leaba Semiconductor for $380 million. The surprising part of this acquisition is that the company has only been in business for less than two years and that very little is known about it.
Leaba Semiconductor, which was formerly known as Arena Semiconductor, was started in 2014 by Eyal Dagan and Ofer Eini. Dagan is the CEO of the company while Eini is its CTO. The pair has experience in the industry and this is their second time selling one of their companies.
In 2009, Dagan and Eini sold their former company Dune Networks, which specialised in manufacturing high speed network switches, to Broadcom for $178 million. They each received $50 million from the deal and used it to help fund their next venture.
Laeba Semiconductor is a fabless semiconductor company that helps provide innovative solutions to deal with significant infrastructure challenges. The company is backed by blue chip investors which include Pitango Venture Capital - which has a 13 per cent stake in the company - along with Bessemer Venture Partners which holds a 15 per cent stake. Dagan and Eini each hold a 2 per cent stake while the remaining 53 per cent is held in trust with the owners of the remaining shares being unknown.
This is Cisco's second acquisition this week after buying CliQr for $260 million. The company is currently looking at the multitude of ways in which it can prepare itself to create solutions for the market's future needs.