Cisco has completed its acquisition of Starent Networks, a supplier of internet protocol (IP) based mobile infrastructure offerings targeting mobile and converged carriers.
Starent Networks is a provider of multimedia intelligence, network functions and services to manage access from any 2.5G, 3G and 4G radio network to a mobile operator’s packet core network. Its access-independent technology is deployed in CDMA2000 (1X, EV-DO), UMTS/HSPA and WiMAX networks.
With the completion of the transaction, Starent Networks becomes part of Cisco’s new mobile internet technology group within the service provider group (SPG). In addition, Ashraf Dahod, former president and CEO of Starent Networks, becomes senior vice president and general manager of the new group, reporting to Pankaj Patel, senior vice president and general manager of SPG.
Under the terms of the agreement, Cisco paid $35 per share in cash in exchange for each share of Starent Networks and assumed outstanding equity awards for an aggregate purchase price of approximately $2.9bn.
Cisco expects the acquisition to be dilutive to non-GAAP earnings in fiscal years 2010 and 2011 and accretive to non-GAAP earnings in fiscal year 2012.
