Starent investors approve Cisco's $2.9 billion acquisition of the mobile gear maker. The deal is designed to give Cisco more traction in the mobile Internet space as the number of smartphones and other connected devices grows. The relative ease of the Starent acquisition has contrasted with Cisco's more volatile bid to buy video conferencing equipment maker Tandberg.
Now that's the way Cisco Systems likes its acquisitions to go.
Starent Networks, which makes infrastructure products for wireless service
providers such as AT&T and Verizon, announced that shareholders had at a
special meeting Dec. 11 in Boston
approved the proposed $2.9 billion acquisition by Cisco.
The deal, which still has to get approval from regulators, is expected to
close in the first half of 2010.
The Starent acquisition, first announced Oct. 13, is going along much more
smoothly than Cisco's
attempt to buy video conferencing equipment maker Tandberg.
In that deal, announced Oct. 1, Cisco has had to raise the bid to $3.4
billion and extend its deadline several times before finally gaining control of
enough of the company's stock to go ahead with the purchase.
Cisco announced Dec. 3 that it finally had gained the desired 90 percent of
was able to stave off investor lawsuits
filed by shareholders unhappy with
the price being offered by Cisco.
The Starent acquisition is one of several Cisco is making as it looks to
expand beyond its traditional networking business. With Starent, Cisco aims to
extend its reach in the mobile Internet space as the smartphones and other
Web-connected devices used by consumers and businesses proliferate.
Cisco officials predict that global data traffic on the Internet will more
than double every year through at least 2013.
Along with Tandberg, another big purchase by Cisco in 2009 was of Flip video
camera maker Pure Digital, in May for about $590 million.
Cisco CEO John Chambers
and other officials have said the company will continue its aggressive
acquisitions as it branches out into other markets.