The networking power house Cisco Systems has decided to branch out somewhat and purchase cloud networking company Meraki for a massive $1.2 billion of their hard earned cash both companies announced over the weekend.
Cisco have been struggling lately, so much so that there has been massive job cuts from within the company of around 1,300 staff which gave them a saving of around $1 billion which represented around 2% of the work force (http://www.bbc.co.uk/news/business-18964559). As the article goes on to state; Cisco has shed more than 10,000 jobs over the last year in an effort to stem losses and continue on in good shape.
All this is of course subject to approval by the relevant bodies and is expected to be finalised in the second quarter for Cisco’s fiscal year. Merkai is a relatively new company as it was founded in 2006 by a group of MIT candidates but has been funded by the likes of Sequoia Capital and Google.
“When compared to other opportunities, Meraki built a unique cloud-based business from the ground up that addresses the broader networking shift towards cloud, not just within wireless. Meraki created a massively scalable architecture that offers easy to deploy, secure, and manage networks,” wrote Cisco in a blog post announcing the acquisition.