Cisco Agrees to Buy Israeli Software Co. Intucell for $475 Million
By Dow Jones Business News, January 23, 2013, 08:36:00 AM EDT
By Saabira Chaudhuri
Cisco Systems Inc. ( CSCO ) has agreed to buy Israeli software maker Intucell for $475 million in cash and retention- based incentives, as the technology heavyweight looks to address the challenges brought about by increased network traffic.
Based in Ra'anana, Israel, Intucell provides software that enables mobile carriers to plan, configure and manage cellular networks automatically.
"The mobile network of the future must be able to scale intelligently to address growing and often unpredictable traffic patterns, while also enabling carriers to generate incremental revenue streams," said Kelly Ahuja, senior vice president and general manager of the Cisco Service Provider Mobility Group. "Through the addition of Intucell's industry-leading SON technology, Cisco's service provider mobility portfolioprovides operators with unparalleled network intelligence and the unique ability to not only accommodate exploding network traffic, but to profit from it."
Cisco said the proliferation of connected mobile devices, faster network speeds, and growing demand for high-bandwidth applications and services are driving greater network traffic and complexity. The company also said that as mobile service providers continue to face increased end-user demand, the need to optimize network bandwidth, usage and services is rising.
The company sees Intucell's software as a way to address these challenges by examining the network, identifying issues in real time and adapting the network to meet demand.
Once the deal closes--expected in the third quarter of fiscal 2013--Intucell employees will be integrated into Cisco'sService Provider Mobility Group.
Cisco's shares were flat at $20.87 in recent premarket trading. The stock has risen 16% in the past three months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com[color=red][/color]