Cisco Closes $2.9B Starent Acquistion
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Cisco (NASDAQ: CSCO) originally announced its plans to buy Starent on Oct. 13. The smaller company's shareholders approved the deal on Dec. 11 and U.S. Department of Justice and Federal Trade Commission gave the transaction the go-ahead three days later.
The new Cisco wireless division will compete against a number of vendors including Alcatel-Lucent (NYSE: ALU) as well as Ericsson, which now owns the former wireless assets of Nortel Networks.
The closure of the Starent deal marks the second major Cisco acquisition to be finalized this month.
Cisco successfully concluded its $183 million acquisition of SaaS security vendor ScanSafe at the beginning of December, just over a month since it first announced its plan to buy ScanSafe on Oct. 27.
The last remaining big deal from October that Cisco has yet to close is its acquisition of videoconferencing vendor Tandberg.
Cisco announced its intent to purchase Tandberg for $3 billion on Oct. 1.
However, a number of Tandberg shareholders balked at the deal as it did not value Tandberg on a price/earnings ratio as highly as Cisco's deal had valued Starent.
Since then, Cisco has upped the Tandberg bid to $3.4 billion and now controls more than 90 percent of the voting shares.
The U.S. Department of Justice is still in the process of approving the Tandberg deal.