Cisco to acquire Meraki for $1.2 billion

Nov 19, 2012

American information technology firm Cisco said it will acquire Meraki Inc., a leader in cloud networking, in a deal worth $1.2 billion.

Based in San Francisco, Meraki was founded by researchers at the Massachusetts Institute of Technology.

will pay about $1.2 billion in cash and retention-based incentives to acquire the entire business and operations of Meraki.

The deal announced Sunday on Cisco's website is expected to be completed in the second quarter of Cisco's fiscal 2013, subject to customary closing conditions including regulatory review.

Meraki offers small and medium sized companies networking solutions that can be centrally managed with cloud computing.

Cloud computing allows for the accessing, via Internet and at a distance, information stored on other computers.

This technology spares users from investing in costly equipment.

"The acquisition of Meraki enables Cisco to make simple, secure, cloud managed networks available to our global customer base of mid-sized businesses and enterprises," said Rob Soderbery, of Cisco Enterprise Networking Group.

"These companies have the same IT needs as larger organizations, but without the resources to integrate complex IT solutions," he added.

Meraki technology offers users Wi-Fi, switching, security and mobile device management centrally managed from the cloud.

The New York Times said this is the eighth takeover so far this year for Cisco, which is very active in .

Prior to this, also in the area of cloud computing, it said last week it planned to buy Santa Clara, California-based Cloupia for $130 million.

Explore further: Mexico City proposes regulations for Uber

Related Stories

Cisco to buy ScanSafe for $183 million

Oct 27, 2009

Cisco announced on Tuesday it has agreed to buy Web security company ScanSafe for some 183 million dollars, the latest in a string of acquisitions by the US networking giant.

HP gunning for Cisco in computer network arena

May 09, 2011

Hewlett-Packard (HP) on Monday unveiled business computer networking gear tailored for modern Internet demands, taking direct aim at Cisco in a multi-billion-dollar market.

Recommended for you

Mexico City proposes regulations for Uber

9 hours ago

Mexico City is proposing regulations that would allow Uber and other smartphone-based ride-sharing apps to operate, while requiring drivers and cars to be registered, the city's Office of Legal and Legislative Studies said ...

Shyp reclassifies contract couriers as employees

Jul 03, 2015

Shyp, the quickly growing startup that provides on-demand courier services, said Wednesday it would reclassify its contract workers as employees, becoming the latest high-profile tech company to change how it compensates ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.