Cisco to buy Viptela for $610m
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Cisco’s has announced plans to acquire Viptela and combine the San-Jose-based vendor’s SD-WAN technology with its own efforts, moving further toward a software model that produces more reliably recurring revenue.
SD-WAN is emerging as this year’s big networking, taking the fabric of software defined networking and turning it into an enterprise-focused product.
SD-WANs promise to redefine the way enterprises build and operate their wide area networks, making it easier to to hook up branch locations, data centers, and company headquarters with flexible infrastructure.
Cisco will be paying $610 million in cash and assumed equity awards for the acquisition. Viptela’s talent will join the company’s Enterprise Routing team, working with them to enhance Cisco’s SD-WAN technology with their own. The deal is expected to close in the second half of 2017.
Questions & Answers
Q.What is the primary reason Cisco is acquiring Viptela?
What is the primary reason Cisco is acquiring Viptela?
Cisco aims to combine Viptela's SD-WAN technology with its existing efforts. This move is intended to advance Cisco towards a software model, which generates more reliably recurring revenue.
Q.How will Viptela's employees be integrated into Cisco?
How will Viptela's employees be integrated into Cisco?
Viptela's talent will join Cisco's Enterprise Routing team. They will work collaboratively to enhance Cisco's SD-WAN technology with their expertise.
Q.What financial terms are involved in Cisco's acquisition of Viptela?
What financial terms are involved in Cisco's acquisition of Viptela?
Cisco is paying $610 million for the acquisition. This payment will be made through a combination of cash and assumed equity awards.
Q.When is this acquisition expected to be finalised?
When is this acquisition expected to be finalised?
The deal between Cisco and Viptela is anticipated to close within the second half of 2017. This timeline indicates when the transaction should be completed.