Network equipment giant Cisco Systems is buying IP
platform specialist P-Cube for $200 million in cash and stock.
P-Cube’s technology helps telecom carriers, cable operators and ISPs manage Voice over Internet Protocol
For example, the programmable platform automates tasks like identifying subscribers and billing for the various applications. It’s customers include BellSouth , SingTel and Plala Networks.
“(The deal) further emphasizes our commitment to service providers and our on-going development efforts to bring service intelligence into IP data networks,” Mike Volpi, senior vice president and general manager, said in a statement.
When the deal closes later this year, P-Cube employees will report to Pankaj
Patel, vice president and general manager of Cisco’s broadband edge and midrange routing business unit.
P-Cube is privately held and has raised $70 million in three rounds from Accel Partners, Panasonic Ventures, Venrock and others. The 5-year-old firm is based in California and also has research and development lab in Israel. It has 118 employees.
The P-Cube buy is the latest in a series of acquisitions for Cisco, which has been employing its
sizeable cash reserves to bolster its technology in growth areas.
Cisco, which competes against networking hardware makers Juniper and Nortel
, recently posted strong quarterly results but its cautious financial forecasts for the remainder of the year disappointed many industry-watchers.
A spokesman for the company declined comment, referring questions to Cisco. Cisco spokesman Robert Barlow said the company hopes to integrate some features of P-Cube’s software in nine to 12 months. Hardware-based offerings will take a bit longer, he said.
