Cisco (NASDAQ: CSCO) has agreed to acquire network automation software developer Tail-f Systems for $175 million cash as Cisco aims to grow its virtualization technology portfolio for multi-vendor environments.
The transaction is subject to customary regulatory approvals and is slated to close in the fourth quarter of Cisco’s 2014 fiscal year, Cisco said Tuesday.
Cisco says combining its virtualization product with Tail-f’s orchestration platform is intended to help organizations manage both virtual and physical networks.
“With a rapidly increasing number of people, devices, and sensors connecting across the Internet of Everything (IoE), service providers require new capabilities to deliver value-added, cloud-based services and applications, ” said Hilton Romanski, Cisco senior vice president of corporate development.
Romanski added the company seeks to help network service providers address bottleneck, provisioning and cost issues through the acquisition.
Cisco’s cloud and virtualization unit, led by Gee Rittenhouse, will absorb Tail-f employees after the deal closes.