cisco, starnet, cisco starent, starent networks, gemina
written by indianachu
at Tuesday, October 13, 2009
Cisco to Buy Starent for $2.9 Billion for Mobile Gear
Cisco Systems Inc., the largest maker of networking equipment, agreed to buy Starent Networks Corp. in a deal valued at $2.9 billion, its second multibillion- dollar acquisition in less than two weeks.
Cisco will pay $35 a share in cash and assume outstanding equity awards, according to a statement today. The per-share price is 21 percent more than Starent’s closing price yesterday. Cisco, based in San Jose, California, expects the transaction to add to earnings by fiscal 2012.
Starent’s equipment helps wireless carriers understand the kind of traffic that’s crossing their networks, enabling the fastest routing of that information to mobile devices. The acquisition helps Cisco benefit from the increasing demand for devices such as the iPhone and BlackBerry, which boost data traffic, said Joanna Makris, an analyst at Brigantine Advisors.
“Cisco sees the consumer trend toward the pervasive adoption of mobile devices,” New York-based Makris said. She recommends holding Cisco shares and buying Starent, and owns neither. “They want to find a way to drive network traffic and the growth of their infrastructure business.”
indianachu : 01
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