Cisco Systems Inc. (NASDAQ: CSCO) announced Sunday that it will buy San Francisco-based Meraki Inc. for $1.2 billion to expand its cloud computing solutions for customers, according to an Associated Press article.
Meraki CEO Sanjit Biswas is expected to lead Cisco’s new cloud networking group that will be formed as a result of the acquisition.
“Meraki’s solution was built from the ground up optimized for cloud, with tremendous scale, and is already in use by thousands of customers to manage hundreds of thousands of devices, ” said Rob Soderbery, senior vice president of Cisco enterprise networking group.
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According to its website, Meraki had originally planned to remain independent and go public. The purchase is expected to help it achieve its goal of hitting $1 billion in annual revenue.
Cisco said it expects to close the deal with cash and retention-based incentives in its second fiscal quarter ending in January.
Founded in 2006 by members of MIT’s Laboratory for Computer Science, Meraki offers cloud-managed Wi-Fi, switching, security and mobile device management. The company also has offices in New York, London and Mexico.
Cisco recently agreed to purchase software company Cloupia for $125 million.