Cisco Systems buying Swedish virtualization company

San Jose-based Cisco Systems, a long-time big acquirer of other companies, on Tuesday said it has agreed to buy Tail-f Systems of Stockholm, Sweden, for $175 million.

The deal is intended to help Cisco expand into so-called virtualized networking, where Internet-based software takes over many of the functions previously handled by a corporation’s own networking hardware.

Cisco said the deal is expected to be completed in the fourth quarter of its fiscal year 2014.

In a note to his clients, analysts with the International Strategy & Investment Group said Cisco’s “acquisition strategy is helping it retain competitiveness and improve exposure to faster growing segments of the networking market.”

Photo by Paul Sakuma, AP

Steve Johnson Steve Johnson (298 Posts)

Steve Johnson covers the microchip industry, cyber security and the big-technology sector that includes Hewlett-Packard, Oracle and Cisco Systems.