Cisco to Acquire Small Cell and Femtocell Specialist Ubiquisys for $310 Million

Cisco to Acquire Small Cell and Femtocell Specialist Ubiquisys for $310 Million

Cisco's stock is up slightly today following an announcement that it plans to acquire Ubiquisys, a privately held firm based in the U.K., for approximately $310 million in cash and retention-based incentives. Ubiquisys is a leading provider of intelligent 3G and long-term evolution (LTE) small-cell technologies, and the planned acquisition will further bolster Cisco's portfolio for mobile carriers.

Small cell networks are viewed as a cost-effective way to increase capacity and make better use of spectrum assets. Traffic that gets offloaded to small cell networks ends up traveling faster, offering more consistent voice and data transmissions in an increasingly crowded mobile landscape.

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"Cisco is ‘doubling down' on its small cell business to accelerate strong momentum and growth in the mobility market," said Kelly Ahuja, senior vice president and general manager, Cisco Mobility Business Group. "By acquiring Ubiquisys, we are expanding on our current mobility leadership and our end-to-end product portfolio, which includes integrated, licensed and unlicensed small cell solutions that are tightly coupled with SON, backhaul, and the mobile packet core. For service providers, Ubiquisys supports cost effective coverage and capacity that delivers a differentiated customer experience."

Assuming the deal goes through, Cisco said it plans to integrate existing Ubiquisys employees into its Cisco Service Provider Mobility Group. The acquisition is expected to close in the fourth quarter of Cisco's fiscal year 2013.
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