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