Cisco Systems Inc.
) recently announced that it has agreed to buy
cellular-network-gear provider, Ubiquisys Ltd. for $310
Swindon, U.K.-based Ubiquisys Ltd. is a privately-held mobile
communications company. It designs and develops communications
devices and solutions for mobile operators and consumers. It
specializes in small-cell radio transmitters called picocells or
femtocells that improve cellular services.
Upon the completion of the deal, Ubiquisys will become a part
of Cisco's Small Cell Technology Group, augmenting Cisco's
offering to service providers.Cisco is seeing strong momentum in
the mobile market. Cisco's product portfolio already offers
small-scale equipment handling for 3G cellular traffic and
After the acquisition, Cisco will benefit from Ubiquisys
software, expertise and knowledge that should boost Cisco's
mobile-carrier business in the future.
Cisco Systems is a leading provider of IP-based networking and
other products. As a part of its acquisition strategy, Cisco
bought 11 companies in 2012. In January, Cisco spent $475 million
to purchase Intucell, a company that develops advanced
self-optimizing network (SON) software to enable mobile carriers
to plan, configure, manage and optimize cellular networks
Further, it acquired cloud services management business
SolveDirect for an undisclosed amount. SolveDirect offers
cloud-based solutions for enterprises and service providers,
which help to streamline data and workflows across unified
We believe that these acquisitions will broaden Cisco's
customer base and network offerings, providing the company with a
significant competitive edge.
Cisco's revenues in the second quarter of fiscal 2013
increased 5.2% year over year and 1.7% sequentially to $12.1
billion. Products (78.0% of total revenue) were up 3.3% year over
year to $9.4 billion. Services (22.0% of total revenue) jumped
12.5% year over year to $2.7 billion.
Cisco carries a Zacks Rank #2 (Buy). Other companies in the
sector that also look attractive include
Hewlett Packard Company
). While Hewlett Packard and Silicom carry a Zacks Rank #1
(Strong Buy), Juniper carries a Zacks Rank #2 (Buy).
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