Cisco Systems is poised to acquire Jasper Technologies, the developers of a cloud-based Internet of Things (IoT) service platform, for $1.4 billion.
On Wednesday, Cisco revealed that it would be foraying into the burgeoning IoT space with the acquisition of Santa Clara-based Jasper Technologies.
According to the deal's terms, Cisco will not only be shelling out $1.4 billion in cash, but will also be paying the assumed equity awards as well as the extra retention-based incentives.
"IoT has become a business imperative across the globe. Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale," says Jahangir Mohammed, Jasper's CEO. "By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success."
Jasper is involved in the development and provision of a SaaS platform. The IoT service platform from Jasper automates the administration of IoT services across devices that are connected, enabling companies to develop a novel business model that can convert their offerings into connected services. This will in turn help the companies discover a new means of generating revenue.
The deal will enable Cisco to offer comprehensive IoT solutions that are interoperable across gadgets and will work in tandem with app developers, IoT service providers and a network of partners.
Cisco will not only build on Jasper's existing IoT platform, but will also add several new IoT-related services such as security for connected devices, enterprise Wi-Fi and advanced methods to manage the usage of devices in a better manner.
"Cisco views Jasper as a unique IoT service platform that is disrupting a massive market with strong strategic alignment with Cisco. Jasper represents the largest platform of scale in IoT today with over 3,500 enterprise customers and 27 service providers across 100 countries," notes Rob Salvagno, Cisco's Head of Corporate Development and Investments.
Salvagno adds that the two companies are seen as a cultural fit and their common vision will make the partnership fruitful.
Thanks to the partnership with Jasper, Cisco will have at its hands a wider catalog of international customers such as Ford and Boston Scientific.
The deal is anticipated to close by Q3 2016 year, but is hinged on customary closing conditions. The new IoT Software Business Unit will be steered by Mohammed.
Photo : Stefanus Prayitno | Flickr
