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Cisco today announced it has agreed to fork over $2.9 billion to acquire Starent Networks Corp., a Massachusetts-based company who makes equipment that allows carriers to tie their wireless networks to the Internet.
"We are very pleased that Starent Networks will be joining the Cisco team, and we believe their products and engineering talent will greatly benefit our Service Provider customers as they build out their Mobile Internet offerings," said John Chambers, Chairman and Chief Executive Officer.
Under terms of the agreement, Cisco will pay $35 per share in cash for each share of Starent Networks, which represents a 21 percent premium to Monday's closing price of $29.03. In addition, Cisco will also assume outstanding equity awards.
Starent has already accepted the offer, however the deal is subject to closing conditions and regulatory review. Barring any unforeseen complications, Cisco expects the deal to close during the first half of 2010.
Image Credit: Cisco