Cisco Completes Acquisition of Starent Networks

Cisco (News - Alert), a provider of networking architecture and solutions for business has announced the completion of its acquisition of Starent Networks a provider of Internet protocol- based mobile communication solutions used by mobile companies and other converged carriers.

 

The company has completed the acquisition by offering $35 per share for every Starent Networks (News - Alert) share and is said to have paid $2.9 billion as the purchase price. Cisco officials anticipate that this acquisition will have an effect on the earnings per share to expected non-GAPP earnings during the financial years 2010 and 2010 and is expecting for an increase in the non-GAPP earnings during the fiscal year 2012. The shares of Starent Networks will be delisted to complete the acquisition process.

 

Currently there is a growing demand for mobile Internet and IP-enabled smartphones and other mobile devices. In the recent past more and more services providers have aggressively entered the IP enabled mobile market segment. A recent released Cisco Visual Networking index indicates the gaining momentum of worldwide mobile traffic and anticipated twofold growth every year all the way through 2013.  

 

The mobile infrastructure solutions offered by Starnt Network include multimedia intelligence, core network functions and services to manage access from any of 2.5G, 3G and 4G radio networks to a mobile operator’s packet core network. Starent Network plays an important role in allowing the mobile service providers to augment their network capabilities, company officials said. The access-independent technology offered by Starent Network is currently used in CDMA2000, UMTS/HSPA and WiMAX (News - Alert) networks.

 

The completion of the acquisition transactions made Starent Network as a part of Cisco’s newly formed Mobile Internet Technology Group in Service Provider Group.

 

Cisco has appointed Ashraf Dahod (News - Alert), past-president and CEO, of Starent Networks as Senior Vice President and General Manager of the newly formed group. Ashraf will report to Pankaj Patel (News - Alert), senior vice president and general manager of SPG.