Cisco plans to buy Comptel's Axioss software so it can bring technology that eases network management for telecommunications companies into its products.
The acquisition, announced on Sunday, will see the networking specialist pay around $31m (£18.8m) for Comptel's UK subsidiary Axiom Systems, which will give it the Axioss technology and an undisclosed number of the company's employees.
Service providers, such as Cable & Wireless, Deutsche Telekom and AOL, use Axioss technology to help them manage orders, inventory and new customer activations across their networks.
With the buy "Cisco will deliver network management technology and services that will help service providers significantly increase the speed and lower the costs of delivering a wide range of voice, video and data services to their customers", Cisco's head of UK service provider and media, Jordi Ferrer, said in a statement.
Cisco hopes to integrate the Axioss technology into the Cisco Prime product portfolio for enterprises and service providers.
Comptel's chief technology officer, Gareth Senior, will also transfer to Cisco, Comptel said in a statement on Monday.
Cisco expects the acquisition to be completed by the third quarter of 2011, subject to closing conditions.