Cisco Systems (NASDAQ:CSCO), the largest network equipment manufacturer announced its decision to acquire Jasper Technologies for $1.4 billion to boost its initiatives in the growing connected devices market.
According to Cisco, it would pay Jasper Technologies with cash and assumed equity awards, and additional incentives.
Jasper Technologies is a privately-held company engaged in providing cloud-based platform for connected devices or Internet of Things (IoT) to help enterprises and service providers launch and monetize their IoT services globally.
The network equipment manufacturer described Jasper Technologies as a leading IoT service platform provider in the industry when it comes to the number of enterprises and service providers.
Many of the largest enterprises and service providers are using the Jasper Technologies’ platform to scale their IoT services business globally. Its products allow customers connect devices via cellular networks and manage them through software.
Jasper Technologies develops and provides SaaS platform with a predictable, recurring revenue IoT business that manages and drives a wide range of connected devices and services.
Acquisition allows Cisco to offer complete IoT platform
Acquiring Jasper Technologies would allow Cisco to offer a complete IoT solution that is interoperable across devices and works with IoT service providers, application developers and an ecosystem of partners.
Cisco CEO Chuck Robbins said, “I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognize the value of the Internet of Things. Together, we can enable service providers, enterprises and the broader ecosystem to connect, automate, manage, and analyze billions of connected things, across any network, creating new revenue streams and opportunities.”
Jasper Technologies CEO to join Cisco
Jahangir Mohammed, the chief executive officer of Jasper Technologies will join Cisco following the completion of the acquisition. He will head the network equipment manufacturer’s new IoT Software Business Unit.
Mr. Mohammed will report to Rowan Trollope, the senior vice president and general manager of IoT and Collaboration Technology Group at Cisco.
Both companies expect to complete the acquisition in the third quarter of 2016, subject to customary closing conditions.
“IoT has become a business imperative across the globe. Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale. By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success,” said Mr. Mohammed.