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Cisco acquires cloud networking infra firm Meraki for $1.2 bn

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MUMBAI: Cisco has acquire privately held Meraki, a leader in cloud networking, for approximately $1.2 billion in cash and retention-based incentives to acquire the entire business and operations of Meraki.

Headquartered in San Francisco, California, 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.

The acquisition is expected to close in the second quarter of Cisco’s fiscal year 2013, subject to customary closing conditions, including regulatory review.

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 Cisco Enterprise Networking Group senior vice president Rob Soderbery.

“Meraki’s solution was built from the ground up optimised 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 optimisation, application firewall and other advanced networking services.

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

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