Cisco to buy BroadSoft in $1.9 billion deal

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(Reuters) – Cisco Systems Inc (CSCO.O) will buy U.S. telecommunications program association BroadSoft Inc (BSFT.O) in a understanding valued during $1.9 billion, as a world’s largest networking rigging writer shifts from a stagnating bequest business of switches and routers.

Cisco pronounced on Monday it offering $55 per share, that represents a reward of 2 percent to BroadSoft’s final close.

BroadSoft shares were adult 1.5 percent before a bell, while Cisco shares were adult marginally.

The deal, that comes after Reuters reported on Sunday that a companies were in talks, will give Cisco a stronger foothold in offered one communications program to vast telecommunications firms.

The equity value of a understanding is $1.71 billion, formed on 31 million shares outstanding, according to Thomson Reuters data.

The understanding is approaching to tighten during a initial entertain of 2018, a companies pronounced in a statement.

Upon execution of a deal, BroadSoft employees will join Cisco’s one communications record group.

BroadSoft provides program and services that capacitate mobile, fixed-line and wire use providers to offer one communications over their internet custom networks.

Cisco, like other bequest record firms, has been focusing on high-growth areas such as security, a Internet of Things and cloud computing.

BroadSoft has historically sole a products to vast telecommunications companies such as Verizon Communications Inc (VZ.N) and ATT Inc (T.N), that afterwards resell a program to their business customers.

The BroadSoft understanding is a company’s second vital merger this year following a $3.7 billion merger of privately-held AppDynamics Inc in March.

Reporting by Munsif Vengattil and Arjun Panchadar in Bengaluru; Editing by Supriya Kurane

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