Cisco Announces Intent to Acquire Meraki

Sun Nov 18, 2012 6:47pm EST

* Reuters is not responsible for the content in this press release.

  SAN JOSE, CA, Nov 18 (Marketwire) -- 
Cisco (NASDAQ: CSCO) today announced its intent to acquire privately held
Meraki Inc., a leader in cloud networking. Headquartered in San
Francisco, Calif., with offices in New York, London and Mexico, Meraki
offers midmarket customers easy-to-deploy on-premise networking solutions
that can be centrally managed from the cloud. 

    As the IT industry transforms in the mobile-cloud era, Cisco is solving
customers' networking and business enablement challenges by delivering
cloud networking and device and security services. The acquisition of
Meraki complements and expands Cisco's strategy to offer more
software-centric solutions to simplify network management, help customers
empower mobile workforces, and generate new revenue opportunities for
partners.

    Meraki's cloud networking solutions will expand Cisco's network offerings
by providing scalable solutions for midmarket businesses. The Meraki
acquisition will also strengthen Cisco's Unified Access platform, which
makes IT more responsive to business innovation by simplifying IT
operations and uniting wired and wireless networks, policy and management
into one integrated network infrastructure, unlike other competitive
offerings. 

    "The acquisition of Meraki enables Cisco to make simple, secure, cloud
managed networks available to our global customer base of mid-sized
businesses and enterprises. These companies have the same IT needs as
larger organizations, but without the resources to integrate complex IT
solutions," said Rob Soderbery, senior vice president, Cisco Enterprise
Networking Group. "Meraki's solution was built from the ground up
optimized for cloud, with tremendous scale, and is already in use by
thousands of customers to manage hundreds of thousands of devices."

    Meraki technology offers customers Wi-Fi, switching, security and mobile
device management centrally managed from the cloud. Meraki solutions
support BYOD, guest networking, application control, WAN optimization,
application firewall and other advanced networking services.

    Meraki was founded by members of MIT's Laboratory for Computer Science.
Meraki combines a high-velocity software development methodology with a
tightly linked inside sales and channel model that will form the new
Cloud Networking Group. 

    Under the terms of the agreement, Cisco will pay approximately $1.2
billion in cash and retention-based incentives to acquire the entire
business and operations of Meraki. The acquisition is expected to close
in the second quarter of Cisco's fiscal year 2013, subject to customary
closing conditions, including regulatory review. 

    Investor and Media Events:

    Rob Soderbery, senior vice president of Cisco's Enterprise Networking
Group; Hilton Romanski, vice president of business development for Cisco;
and Sanjit Biswas, chief executive officer and co-founder of Meraki will
host a joint investor call on November 19 from 6:00-6:45 a.m. PST to
discuss the proposed transaction. 

    To participate in this call via Cisco Webex, go to
https://cisco.webex.com/cisco/onstage/g.php?d=209867958&t=a. To ask
questions during the call, you must access the meeting via this Webex
link. The event password is 209 867 958. The dial-in number is
+1.866.432.9903 (United States/Canada). International callers can access
country phone numbers at
http://cisco.com/en/US/about/doing_business/conferencing/index.html.
Follow the prompts to enter the Access Code (209 867 958) followed by the
# sign. The replay also will be available via webcast from Monday,
November 19, 2012 on the Cisco Investor Relations website at
http://investor.cisco.com.

    Supporting Resources:


--  For more information on how Cisco is delivering on unified wired and
    wireless convergence, please visit: Cisco Unified Access, Borderless
    Networks and Cisco Wireless Networking Group
    
    
--  Read the Borderless Networks blog and Mobility blog
    
    
--  Follow Cisco Enterprise and Cisco_Mobility on Twitter


    

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    Tags/keywords: Cisco, Meraki, acquisition, Unified Access, mobility,
wireless, wired, switching, cloud, network, security, BYOD, IT,
Borderless Networks, access point, Aironet, Catalyst, video, service
provider, SP, switch, CleanAir, controller, Cisco Prime, Identity
Services Engine, Mobility Services Engine, ISE, MSE, 802.11ac

    About Cisco 
 Cisco (NASDAQ: CSCO) is the worldwide leader in networking
that transforms how people connect, communicate and collaborate.
Information about Cisco can be found at http://www.cisco.com. For ongoing
news, please go to http://newsroom.cisco.com.

    Cisco and the Cisco logo are trademarks or registered trademarks of Cisco
and/or its affiliates in the U.S. and other countries. A listing of
Cisco's trademarks can be found at www.cisco.com/go/trademarks.
Third-party trademarks mentioned are the property of their respective
owners. The use of the word partner does not imply a partnership
relationship between Cisco and any other company. 

    Forward-Looking Statements

    This press release may be deemed to contain forward-looking statements,
which are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including the expected completion of the
acquisition and the time frame in which this will occur, the expected
benefits to Cisco, its product platforms and its customers from
completing the acquisition, plans regarding Meraki personnel, and
statements regarding our strategy to accelerate the adoption of
software-based business models, our value proposition with customers, our
competitive performance and new market opportunities. Readers are
cautioned that these forward-looking statements are only predictions and
may differ materially from actual future events or results due to a
variety of factors, including, among other things, the potential impact
on the business of Meraki due to the uncertainty about the acquisition,
the retention of employees of Meraki and the ability of Cisco to
successfully integrate Meraki and to achieve expected benefits, business
and economic conditions and growth trends in the networking industry,
customer markets and various geographic regions, global economic
conditions and uncertainties in the geopolitical environment and other
risk factors set forth in Cisco's most recent reports on Form 10-K and
Form 10-Q. Any forward-looking statements in this release are based on
limited information currently available to Cisco, which is subject to
change, and Cisco will not necessarily update the information.

    

Cisco Press Contact:
Ben Stricker
Cisco
(408) 527-3199
bstricke@cisco.com

Industry Analyst Contact:
Matt Barham
Cisco
(408) 566-7334
mbarham@cisco.com

Investor Relations:
Carol Villazon
Cisco
(408) 527-6538
carolv@cisco.com 

Copyright 2012, Marketwire, All rights reserved.

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