Boston, MA 06/17/2014 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) has announced its intent to acquire Swedish, privately held Tail-f for $175 million. The acquisition will enable the company expand its network management and automation business to broaden cloud services offerings. The Purchase price is thought to comprise both cash and retention based incentives.
Deal to close in the Fourth Quarter
Cisco Systems, Inc. (NASDAQ:CSCO) hopes Tail-f will enable it harness effectively the growing consumer base that is constantly in need of cloud technology with greater agility at lower costs. The deal is to close in the fourth quarter. Tail-f develops and implements products that help service providers, as well as enterprise IT Organizations, implement applications and network services over various network devices.
Tail-f’s technology also helps in reducing time-to-market for network equipment vendors while building equipment for agile programmable networks. Customers have in the recent past turned to Cisco in using cloud technology to deliver new services with greater agility and lower costs, as surging network traffic volumes as well as sprawling infrastructures continue to make networks more expensive and complex.
Cisco to Eliminate Complexities in Networks
Acquisition of Tail-f will accelerate Cisco Systems, Inc. (NASDAQ:CSCO)’s cloud virtualization strategy aimed at delivering software’s able to deliver value to customer’s applications and services. Cisco’s Service providers while using Tail-f’s orchestration technology will essentially simplify and automate management and provisioning of physical, virtual networks. Tail-f’s solutions are already applicable on network problems ranging from layer 2 to layer 3 VPN provisioning, as well as next generation networking based on network functioning virtualization NFV.
Cisco goal with the acquisition of Tail-f is to help do away with the problems commonly associated with operational complexity within networks. Tail-f is set to give Cisco Systems, Inc. (NASDAQ:CSCO) a boost in network function virtualization sure to help service providers reduce operating costs, as well as the time it takes to deploy new services. Tail-f employees are expected to join Cisco’s cloud and virtualization group upon completion of the transaction.
