Another enterprise is moving towards the cloud. Cisco Systems, one of the largest networking gear producers specializing in switches and routers, has announced that it is purchasing BroadSoft, a leader in cloud-based communications. The deal is part of Cisco’s strategy to evolve parts of their legacy portfolio into a more modern catalog with an emphasis on cutting-edge communications technologies.
With a total purchase price of $1.9 billion at $55 per BroadSoft share, the acquisition comes shortly after news that a potential deal was being discussed. BroadSoft shareholders will receive a premium of 2% over last Friday’s closing price, thanks to a 1.35% increase per share after Cisco’s offer.
Despite this, some shareholders are protesting the acquisition and calling adequate consideration of other alternatives into question. In response, the shareholder rights law firm, Johnson Fistel, LLP, has begun investigating whether BroadSoft board members breached their duties and did not secure the best deal for shareholders. In the following weeks, concerned shareholders have the opportunity to contact Johnson Fistel, LLC and pursue their rights. The Cisco/Broadsoft acquisition is expected to close in Q1 of 2018.
Cisco Adds BroadSoft To Their Collection
BroadSoft is one of more than 200 companies that Cisco has purchased. As a large enterprise and household name in the technology industry, Cisco’s strategic acquisitions have indicated a trend in targeting areas such as cloud technology, IoT, and security, among others. All of these areas are on the cutting edge of technology and growing rapidly; by securing a merger with BroadSoft, which provides Unified Communications (UC) Software-as-a-Service (SaaS) and has partnerships with over 450 telecom carriers worldwide, Cisco hopes to complement their own cloud technology and exponentially grow their offerings.
A Summary Of UC In 2017
2017 has seen a fair amount of market-altering events, including the Mitel/ShoreTel merger and closing of Toshiba’s business phone division. With this most recent development, one thing is abundantly clear: every enterprise should be convinced that the cloud is an essential pillar of success. But, even if that was obvious, in the wake of every merger and acquisition some companies may wonder how to adapt to the inevitable change for their business. A reliable UC provider with a complete portfolio tailored to the size and industry of any business can provide stability to these companies.