Cisco has announced plans to acquire mobile WiMAX developer Navini Networks. Navini has been behind a number of technologies that improve the range and performance of WiMAX networks.
The acquisition will help extend and enhance the company's IP next-generation network (IP NGN) vision to enable service providers to deliver any service to any device over any network.
The company also expects that its broadband wireless solution portfolio, which now includes WiMAX products, will play a key role in Cisco's Country Transformation and "˜Digital Inclusion' initiatives to drive broadband penetration to consumers and business in emerging countries.
"Emerging country service providers are in expansion mode, building out broadband wireless networks, and are concerned about deployment costs and the availability of skilled resources," said Brett Galloway, vice-president and general manager of the Wireless Networking Business Unit, Cisco.
"Around the world, broadband wireless networks based upon WiMAX have the potential to add millions of new internet users who cannot be reached economically using copper or fibre infrastructures. Additionally, WiMAX networks will help drive the transition to open IP-based broadband wireless architectures and accelerate the rollout of new applications and services."
Under the terms of the agreement, Cisco will pay approximately $330 million in cash and assumed options. The Navini acquisition is subject to various standard closing conditions and is expected to close in the second quarter of Cisco's 2008 fiscal year. Upon the close of the acquisition, Cisco plans to integrate Navini into its Wireless Networking Business Unit, under the Ethernet and Wireless Technology Group.