Networking giant Cisco has agreed to buy privately-held firm Cariden Tech. for about $141 million in cash, the firm said today.
California, U.S.-based Cariden will be integrated into Cisco's service provider networking group unit. It provides service optimization services to Verizon, Deutsche Telecom -- the German owner of T-Mobile USA, SingTel, among others, in order to help their networks run more smoothly and efficiently.
The deal is expected to close by the second quarter of the 2013 fiscal year.
The Wall Street Journal noted that Cariden supports Cisco's Open Network Environment Strategy, otherwise known as "Cisco's answer to the potential disruption from new software-defined networking tech that could hurt its margins," the publication said.
The Cariden buy marks the firm's third major acquisition in November. The firm also bought Cloupia for $125 million, which will enhance Cisco's unified dashboard, and the firm also bought Meraki for $1.2 billion as part of the firm's Wi-Fi networking and cloud strategy, but analysts agree that the deal makes sense in spite of the hefty price tag.
Cisco's shares were by up slightly in pre-market trading by 0.53 percent above its Wednesday market closing price.