Cisco acquires networking software architecture
Firm signs definitive agreement to acquire BCN Systems
Cisco has signed a definitive agreement to acquire privately held BCN Systems, a Californian networking software design firm.
The networking giant said BCN's networking software architecture for routing applications will be assimilated into its own routing platforms.
Under the terms of the agreement, Cisco will pay about $34m in cash for all outstanding equity interests of BCN.
In addition, the acquisition price may be increased by as much as $122m, depending on the extent to which "certain development and product milestones" are met after the deal closes.
The BCN team will become part of Cisco's routing technology group under senior vice-presidents Prem Jain and Mike Volpi. The deal is Cisco's 11th acquisition this year, compared with the 20 it made at its peak in 2000.
Cisco said BCN's architecture will eventually be incorporated across Cisco's routing portfolio, contributing to next-generation IP technology and supporting efforts to speed the delivery of data, voice and video services over a converged network.
Keith Humphreys, principal analyst at EuroLAN, said: "Cisco bought Procket Networks earlier this year, which was also in the routing arena, so it is obviously a focus for it. For Cisco it is cheaper to buy key people and keep R&D in-house. It is certainly an interesting model that seems to work."