Cisco Buys Mobile Networking Specialist Intucell for $475 Million
Cisco will pay approximately $475 million in cash and retention-based incentives to acquire the entire business and operations of Intucell.Networking giant Cisco announced it has acquired Israeli self-optimizing network (SON) software developer Intucell for $475 million in an effort to broaden its mobile network intelligence capabilities. The acquisition is expected to close in the third quarter of Cisco's fiscal year 2013, subject to customary closing conditions. The software is designed to enable mobile carriers to plan, configure, manage, optimize and heal cellular networks automatically according to real-time changing network demands, and adds a network intelligence layer to manage and optimize spectrum, coverage and capacity of Cisco’s offerings. Under the terms of the agreement, Cisco will pay approximately $475 million in cash and retention-based incentives to acquire the entire business and operations of Intucell. Upon the close of the acquisition, Intucell employees will be integrated into Cisco's Service Provider Mobility Group, reporting to Shailesh Shukla, vice president and general manager of the software and applications group. With real time network visibility provided by Intucell’s Virtual Drive Test, Intucell’s systems automatically tune the network to actual conditions as they develop and change. Intucell engages with mobile operators directly and together with its partners, typically starting a deployment with a trial in a limited part of the network. Trials are followed by commercial deployment, where Intucell provides licenses to install its technology across the network.
Cisco said the acquisition would also enhance Cisco's ability to deliver next-generation solutions with a SON software platform that supports multiapplication, multivendor and multitechnology capabilities as mobile operators look for a more cost effective and efficient way to keep up with demand for bandwidth and reduce complexity. The software could also enable service providers to manage operational costs and make better use of infrastructure investments, a company statement said.