Cisco is acquiring BroadSoft for $1.9B in big software push

Cisco is acquiring BroadSoft for $1.9 billion, the company announced on Monday. Cisco will pay $55 per share, in cash, in exchange for each share of BroadSoft, or an aggregate purchase price of approximately $1.9 billion net of cash, assuming fully diluted shares including conversion of debt.

The acquisition is aimed at boosting Cisco’s collaboration tools and also diversify its offerings away from switching and routing.

"Together, Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment," said Rowan Trollope, senior vice president and general manager of Cisco's Applications Business Group. "We believe that our combined offers, from Cisco's collaboration technology for enterprises to BroadSoft's suite for small and medium businesses delivered through Service Providers will give customers more choice and flexibility."

BroadSoft provides software and services that enable mobile, fixed-line and cable service providers to offer unified communications over their internet protocol networks. It has historically sold its products to large telecommunications companies such as Verizon and AT&T, which then resell the software to their business customers. Cisco and BroadSoft share a lot of customers, Salvagno added.

The deal is expected to close during the first quarter of 2018, and upon completion of the deal, BroadSoft employees will join Cisco’s unified communications technology group.

BroadSoft is Cisco's second major acquisition this year following the $3.7 billion acquisition of privately-held AppDynamics in March.