Cisco acquires Starent Networks for $2.9 billion

Thu. October 15, 2009; Posted: 05:03 AM

Oct 15, 2009 (Datamonitor via COMTEX) -- STAR | Quote | Chart | News | PowerRating -- Network equipment company Cisco has announced a definitive agreement to acquire IP-based mobile infrastructure solutions provider Starent Networks for $2.9 billon to expand its mobile internet offerings for service providers.

The company said the acquisition, expected to close during the first half of calendar year 2010, will be dilutive to non-GAAP earnings in fiscal years 2010 and 2011 and accretive to non-GAAP earnings in fiscal year 2012.

Upon completion of the transaction, Starent will become Cisco's new Mobile Internet Technology Group led by Starent's president and chief executive Ashraf Dahod, within Cisco's Service Provider Business, led by senior vice president and general manager Pankaj Patel.

Massachusetts-based Starent provides multimedia intelligence, core network functions and services to manage access from any 2.5G, 3G, and 4G radio network to a mobile operator's packet core network. The company, with 1,000 employees, reported revenue of $254.1m for the year ended December 31, 2008.

Dahod said: "Combining Cisco's strength in Video and IP with Starent's mobile infrastructure solutions, creates a compelling portfolio of products that provides an integrated architecture to offer rich, quality multimedia experiences to mobile subscribers on 3G and 4G networks."

Earlier this month, Cisco agreed to acquire Norway-based video communications provider Tandberg for $3 billion to expand its collaboration portfolio. Earlier this year, the company acquired California-based Richards-Zeta Building Intelligence, a provider of intelligent middleware to integrate building infrastructure and IT applications over a common IP network.

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For full details on Starent Networks (STAR) click here. Starent Networks (STAR) has Short Term PowerRatings of 6. Details on Starent Networks (STAR) Short Term PowerRatings is available at This Link.

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