(Image Source: Bloomberg

BY SCOTT MALONE

ANCHOR JASMINE BAILEY

The software giant Cisco is starting holiday shopping early by increasing its footprint in the technology world. Fox Business and CNBC have the details on their latest purchase.

“Cisco meanwhile is buying the privately held cloud networking company Meraki for $1.2 billion."

“Meraki makes products mostly for midsize businesses that allow customers to control wireless networks, provide security and manage wireless devices via the internet.”

Meraki was started in 2006 by three students as a research project in the M.I.T. computer science lab. So what attracted the attention of one of the tech world’s software giants? One Bloomberg analyst says it is an effort by Cisco’s CEO to target a growing market segment.

“Looking to capitalize on the boom in demand for smartphones and tablets in the workplace … the deal really aimed here at broadening his customer base, trying again to cut costs, shut underperforming divisions, and trim prices to fend off rivals.”

According to Business Insider, Cisco’s efforts to slim down include cutting 7,800 jobs over the past year and a half and closing down businesses like the Flip video-camera unit to help the company focus more on its networking business.

A writer for CRN spoke with one Cisco official, who says “the plan is not to take bits and pieces of [Meraki technologies] to build into Cisco’s platforms. Cisco intends to preserve the Meraki platform as it’s run now.”

A blogger for TechCrunch obtained the letter from Meraki’s CEO to the company’s employees. In that letter, the CEO says when Cisco first came calling - he initially decided to go in another direction.

“When Cisco approached with an acquisition offer a few weeks ago, our initial reaction was to politely say ‘thanks, but we’re planning to do our own thing and take Meraki public.’”

The blogger also notes that Meraki’s CEO then reconsidered after looking at the poor valuations tech companies were getting by going public. Cisco expects to close the deal by the end of January.

Cisco Buys Meraki for $1.2 Billion

by Scott Malone
0
Transcript
Nov 19, 2012

Cisco Buys Meraki for $1.2 Billion

 

(Image Source: Bloomberg

BY SCOTT MALONE

ANCHOR JASMINE BAILEY

The software giant Cisco is starting holiday shopping early by increasing its footprint in the technology world. Fox Business and CNBC have the details on their latest purchase.

“Cisco meanwhile is buying the privately held cloud networking company Meraki for $1.2 billion."

“Meraki makes products mostly for midsize businesses that allow customers to control wireless networks, provide security and manage wireless devices via the internet.”

Meraki was started in 2006 by three students as a research project in the M.I.T. computer science lab. So what attracted the attention of one of the tech world’s software giants? One Bloomberg analyst says it is an effort by Cisco’s CEO to target a growing market segment.

“Looking to capitalize on the boom in demand for smartphones and tablets in the workplace … the deal really aimed here at broadening his customer base, trying again to cut costs, shut underperforming divisions, and trim prices to fend off rivals.”

According to Business Insider, Cisco’s efforts to slim down include cutting 7,800 jobs over the past year and a half and closing down businesses like the Flip video-camera unit to help the company focus more on its networking business.

A writer for CRN spoke with one Cisco official, who says “the plan is not to take bits and pieces of [Meraki technologies] to build into Cisco’s platforms. Cisco intends to preserve the Meraki platform as it’s run now.”

A blogger for TechCrunch obtained the letter from Meraki’s CEO to the company’s employees. In that letter, the CEO says when Cisco first came calling - he initially decided to go in another direction.

“When Cisco approached with an acquisition offer a few weeks ago, our initial reaction was to politely say ‘thanks, but we’re planning to do our own thing and take Meraki public.’”

The blogger also notes that Meraki’s CEO then reconsidered after looking at the poor valuations tech companies were getting by going public. Cisco expects to close the deal by the end of January.

View More
Comments
Newsy
www2