Cisco Systems Inc. (NASDAQ: CSCO)announced on Monday that it has entered into an agreement to acquire communication software service, BroadSoft Inc. (NASDAQ:BSFT) for $1.9 billion or $55 per share. Broadsoft shares were up 1.5 percent during premarket on Monday.
Broadsoft offers cloud-based communication solution that enable mobile, fixed-lines and other communication service providers to offer unified communications over network systems.
Broadsoft has over 500 customers globally, but among those customers are communication providers such as AT&T or Verizon, who then resell Broadsoft’s service to millions and millions to their customers worldwide.
Cisco said in the statement that the acquisition will: “reinforces Cisco's commitment to Unified Communications and enhances its ability to address the millions of aging TDM lines poised to transition to IP technology and cloud native solutions over the coming years.”
Rowan Trollope, senior vice president and general manager of Cisco's Applications Business Group said, "We believe that our combined offers, from Cisco's collaboration technology for enterprises to BroadSoft's suite for small and medium businesses delivered through Service Providers will give customers more choice and flexibility."
Rob Salvagno, vice president of Cisco Corporate Development said that acquisitions for the company remain as a core part of the company’s innovation strategy and has helped Cisco enter or advance upon area such as Internet of Things, application intelligence, and artificial intelligence.
Upon completion of the merger, Broadsoft employees will join Cisco’s Unified Communications Technology Group led by Tom Puorro.
The acquisition is expected to close during the first quarter of 2018.