Cisco looking to buy BroadSoft

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Cisco seems to be this close to acquiring US telecommunications software company BroadSoft for roughly $2 billion, reports have claimed.

A source familiar with the negotiations said that the deal could be publicly announced as soon as today.

Such a deal would see Cisco stepping away from selling switches and routers, and moving more into selling unified communications software to big telecommunications firms.

The media are arguing this is a good move for Cisco, knowing that the traditional business of making switches and routers is seeing revenue declines. Lately, Cisco has been focusing on security, IoT and the cloud.

If successful, this would be Cisco’s second major acquisition this year, after it bought AppDynamics for $3.7bn back in March.

While Cisco declined Reuters’ request for comment, BroadSoft decided ‘not to immediately return a request for comment’.

BroadSoft is headquartered in Maryland and creates software and services enabling mobile, fixed-line and cable service providers unified communication options over internet protocol networks.

The company’s biggest clients include Verizon Communications, and AT&T. It also tried selling directly to customers, which shook up its relationship with the telecom partners.

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