Cisco to acquire Ubiquisys for $310 mn

Cisco today announced its intent to acquire privately held Ubiquisys, a leading provider of intelligent 3G and long-term evolution (LTE) small-cell technologies that provide seamless connectivity across mobile heterogeneous networks for service providers.

The acquisition of Ubiquisys further reinforces Cisco's commitment to service providers and strengthens its mobility expertise to deliver more intelligent mobile Internet networks.

As mobile service providers around the world increase voice and data capacity to serve the rapidly growing use of Internet-enabled devices, offloading traffic to small cell networks is a cost-effective way to increase capacity and make better use of spectrum assets.

Small cells deliver their signal over a shorter range, which allows mobile users to get a faster, more consistent voice and data experience. Ubiquisys' small-cell solution adds dynamic intelligence at the edge of the network, enabling service providers to better monetize and optimize their mobile networks.

Ubiquisys' indoor small-cell expertise and focus on intelligent software for licensed 3G and LTE spectrum, coupled with Cisco's mobility portfolio and Wi-Fi expertise, will enable a comprehensive small-cell solution for service providers that supports the transition to next-generation radio access networks.

Together, Ubiquisys and Cisco will offer a differentiated connected experience to the end-user by providing service providers with a comprehensive solution that extends an intelligence layer across the mobile network.

"By acquiring Ubiquisys, we are expanding on our current mobility leadership and our end-to-end product portfolio, which includes integrated, licensed and unlicensed small cell solutions that are tightly coupled with SON, backhaul, and the mobile packet core. For service providers, Ubiquisys supports cost effective coverage and capacity that delivers a differentiated customer experience," said Kelly Ahuja, SVP and GM, Cisco Mobility Business Group.

The Ubiquisys acquisition also complements Cisco's mobility strategy along with the recent acquisitions of BroadHop and Intucell, reinforcing in-house research and development such as service provider Wi-Fi and licensed radio.

These technologies will tie together the mobility architecture that leverages the intelligence of the network from the wireless edge of the network into the wired core.

Upon the close of the acquisition, the Ubiquisys employees will be integrated into the Cisco Mobility Business Group, reporting to Partho Mishra, vice president and general manager, Service Provider Small Cell Technology Group.

Under the terms of the agreement, Cisco will pay approximately $310 million in cash and retention-based incentives to acquire the entire business and operations of Ubiquisys. The acquisition is expected to close in the fourth quarter of Cisco's fiscal year 2013, subject to customary closing conditions.