Cisco is to acquire London-based Acano to expand its collaboration portfolio.
The US giant will pay $700 million in the acquisition in cash and assumed equity awards, as well as retention-based incentives for employees of Acano that join Cisco.
The acquisition is expected to close in Q3 2016.
Acano supplies gateways and video and audio bridging technology to allow customers to connect video systems across cloud and hybrid environments.
In a statement, Cisco cited the interoperability and scalability of the company’s solutions as reasons for the acquisition.
Rob Salvagno, vice president, Cisco Corporate Development said: "Acano’s innovations make it easier for customers to collaborate when, where and how they want.
"Together, we will help our customers to extend collaboration to every room, every screen and every user."
