Cisco Systems today announced that a definitive agreement of acquiring a U.S. telecommunications software firm BroadSoft for close to $2 billion. Cisco will pay $55 per share in the exchange of each share of BroadSoft, or an aggregate purchase price of around $1.9 billion net of cash.
According to the sources if deal negotiations are successfully completed, Cisco will announce the agreement of buying BroadSoft as early as Monday. But for now, Cisco declined to comment.
The deal, which comes after Reuters first reported in August that the company was exploring a sale by giving a stronger foothold in selling unified communications software to big telecommunications firms. Cisco CEO Chunk Robbins said that the deal will help improve the connections of Cisco’s enterprise clients and small businesses with consumers.
Another legacy technology firms have been looking in high-growth areas like security, cloud computing and the Internet of things.
Robbins stated that the probability of tax reform did not impact the timing of BroadSoft deal.
Robbins said, “To date, we have not had any deals that we have considered that we have delayed, or put on hold, because of waiting on repatriation.” “Obviously we remain very optimistic about tax reform, and are hopeful that something will happen late this year or early in 2018.”
After the $3.7 billion acquisition of privately held AppDynamics in March, this year, the new BroadSoft deal would be second major acquisition. This acquisition gives Cisco the most comprehensive set of collection solutions for their customers.