Cisco to Buy Cloud Computing Firm Meraki for $1.2 Billion

Over the weekend, Cisco Systems (Nasdaq: CSCO  ) announced a second big acquisition in the cloud computing space. On Sunday, it announced plans to spend $1.2 billion to acquire San Francisco-based Meraki, a provider of midmarket software for managing Wi-Fi, switching, security and mobile devices from the cloud. This follows Cisco's announcement Thursday that it plans to acquire Cloupia, a Santa Clara, Calif.-based designer of software for managing data centers, for $125 million.

"Meraki's solution was built from the ground up optimized for cloud, with tremendous scale, and is already in use by thousands of customers to manage hundreds of thousands of devices," said Cisco in a statement. The company was originally founded by members of MIT's Laboratory for Computer Science in 2006, and had been preparing for an IPO of its own before receiving Cisco's offer.

Cisco said it will pay for the company in cash, including paying incentives to retain key employees of Meraki. The acquisition is expected to close in the next few months. Once integrated into the company, Meraki will form the core of Cisco's new Cloud Networking Group..


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2119220, ~/Articles/ArticleHandler.aspx, 10/22/2014 8:16:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement