Cisco Announces Intent to Acquire Intucell
January 23, 2013 08:00 ET
Acquisition Advances Cisco's Service Provider Mobile Networking Leadership
SAN JOSE, CA--(Marketwire - Jan 23, 2013) - Cisco (NASDAQ: CSCO) today announced its intent to acquire privately held Intucell. Headquartered in Ra'anana, Israel, Intucell provides advanced self-optimizing network (SON) software, which enables mobile carriers to plan, configure, manage, optimize and heal cellular networks automatically, according to real-time changing network demands. The acquisition of Intucell enhances Cisco's commitment to global service providers by adding a critical network intelligence layer to manage and optimize spectrum, coverage and capacity, and ultimately the quality of the mobile experience.
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. As mobile service providers continue to face increased end-user demand, the need to optimize network bandwidth, usage and services is increasing. Intucell's SON software platform addresses these challenges by examining the network, identifying issues in real time, and intelligently adapting the network to meet demand.
With the evolution of LTE 4G networks, mobile operators are increasingly looking for a more cost effective and efficient way to keep up with demand for bandwidth and reduce complexity. Intucell enhances Cisco's ability to deliver next-generation solutions with a SON software platform that supports multi-application, multi-vendor and multi-technology capabilities and enables service providers to manage operational costs and make better use of infrastructure investments.
"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, Cisco Service Provider Mobility Group. "Through the addition of Intucell's industry-leading SON technology, Cisco's service provider mobility portfolio provides operators with unparalleled network intelligence and the unique ability to not only accommodate exploding network traffic, but to profit from it."
The acquisition of Intucell exemplifies Cisco's innovation framework and supports Cisco's five foundational priorities to lead the market in networking across all customer segments. The acquisition is well-aligned to Cisco's goals of developing and delivering innovative network and software technologies.
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, Software and Applications Group. 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. The acquisition is expected to close in the third quarter of Cisco's fiscal year 2013, subject to customary closing conditions, including applicable regulatory approvals.
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This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding Intucell personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of Intucell due to the uncertainty about the acquisition, the retention of employees of Intucell and the ability of Cisco to successfully integrate Intucell and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
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