Cisco Systems buying BroadSoft for $1.9 billion cash

Cisco Systems Inc. will pay about $1.9 billion cash to buy BroadSoft Inc. in a move aimed at expanding its communications software offerings.

The networking technology giant is paying $55 per share, marking a 2 percent premium to Broadsoft's closing price on Friday.

Gaithersburg, Maryland-based BroadSoft provides telecommunications technology for businesses, including phone services, audio and video conferencing and virtual meetings.

BroadSoft's focus on small- and medium-sized businesses will help bolster Cisco's offerings, the San Jose, California-based company said.

"More and more businesses expect fully featured voice and contact center solutions with the ability to deploy them on-premises or in the cloud," Cisco said.

The deal is expected to close during the first quarter of 2018.