Cisco snaps up WebEx

Networking giant makes acquisition to broaden its reach into unified communications

Cisco has stunned the channel with another big-ticket acquisition, this time picking up web-based conferencing vendor WebEx for $3.2bn.

The networking giant plans to use WebEx’s applications to extend its vision of unified communications, particularly within the SME segment.

Having already been approved by both companies’ boards of directors, Cisco expects the transaction to close in its fiscal fourth quarter.

Charles Giancarlo, chief development officer at Cisco, said in a statement: “As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently.

“The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications.”

Subrah Iyar, chief executive of WebEx, said: “Cisco's global reach and customer focus will help us extend our core web collaboration applications and continue to broaden the services we offer through the WebEx Connect platform.”

Reacting to the news, Keith Humphreys, managing consultant at market-watcher EuroLAN Research, told CRN: “It seems to me that Cisco wants to take on Microsoft head-on.

“But Cisco already has its own telepresence solutions, and this acquisition appears to be in conflict with that.”