Cisco Systems, Inc. (CSCO) has announced that it will acquire the service fulfillment software assets and integrate the associated employees of Axiom Systems, a United Kingdom subsidiary of the Finnish parent company Comptel Corp.
Cisco will pay approximately $31 million in cash for the acquisition, which is expected to close in the third quarter of calendar year 2011 and is subject to standard closing conditions
The deal will enable Cisco to extend its network and service management technologies across its next-generation Internet Protocol (IP) network platforms. Post acquisition, AXIOSS software will also enhance Cisco Prime, a unified network management solution for enterprises and service providers.
Cisco will use the AXIOSS software to add automated ordering to its Prime platform, which allows operators to automate the management of network services. The deal will enable service providers to launch new video, data, mobility and cloud services at a faster pace.
The AXIOSS software suite has already been integrated into the Cisco managed services solutions and upon the closure of the acquisition, the AXIOSS team will be integrated into Cisco’s Network Management Technology Group and Advanced Services Group.
Cisco Systems is a leading provider of IP-based networking and other products. The company’s fourth-quarter earnings beat the Zacks Consensus Estimate by 3 cents and revenue exceeded the consensus estimate by 2.0%.
Though Cisco is undertaking steps to lower the cost structure by reducing headcount, the company is not ignoring growth opportunities. Last week, Cisco announced plans to expand its presence in Canada and add 300 workers.
Cisco is no doubt the networking leader, but competitors like Juniper Networks (JNPR), Hewlett Packard Company (HPQ) through its 3Com acquisition and F5 Networks (FFIV) are gradually picking up market share.
Currently, Cisco carries a Zacks #3 Rank, indicating a short-term Hold recommendation.
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