Network equipment maker Cisco today said itwould pay $2.9bn to acquire Starent Networks, a
supplier of IP-based networking equipment for mobile and converged
carriers.
Starent's access-independent technology is used in CDMA2000,
UMTS/HSPA and Wimax mobile networks.
Explaining the deal, Cisco said the mobile internet was at an
"inflection point" as IP-enabled smartphones and other connected
mobile devices gain market share. According to the Cisco Visual
Networking Index, global mobile data traffic is expected to more
than double every year until 2013.
Cisco will pay $35 per share in cash for all of Starent, valuing
the acquisition at $2.9bn. Both company boards have approved the
deal, which is expected to close during the first half of 2010,
subject to regulatory approval.
Cisco CEO John Chambers said "We believe [Starent's] products
and engineering talent will greatly benefit our service provider
customers as they build out their mobile internet offerings."
Starent CEO Ashraf Dahod said Cisco's strength in video and IP
plus Starent's mobile products created "a compelling portfolio" to
provide rich, high-quality multimedia experiences to mobile
subscribers on 3G and 4G networks.