Cisco Announces Intent to Acquire Viptela

02/05/2017

SAN JOSE, Calif. - May 1, 2017 - Cisco (NASDAQ: CSCO) announced today its intent to acquire Viptela Inc., a privately held software-defined wide area network (SD-WAN) company based in San Jose. Viptela will expand Ciscos SD-WAN portfolio with increased functionality and simplicity delivered through the cloud.

Managing the network is becoming more complex as applications move to the cloud, employees become more mobile and billions of Internet of Things (IoT) devices are added to the network. For businesses, this means how branch offices are connected must evolve. Customers are turning to SD-WAN solutions to help manage and orchestrate their WAN deployments, to cost effectively improve access to both the cloud and their corporate network.

Viptela provides a compelling SD-WAN solution that simplifies management, increases agility and reduces costs of interconnecting dispersed enterprise networks. Its network management, orchestration and overlay technologies make it easy to deploy and manage SD-WAN. This cloud-first approach also aligns with Ciscos Digital Network Architecture (DNA) transition to software-driven, automated networks that are more flexible, responsive and dynamic.

Viptelas technology is cloud-first, with a focus on simplicity and ease of deployment while simultaneously providing a rich set of capabilities and scale. These principles are what todays customers demand, said Scott Harrell, senior vice president of product management for the Cisco Enterprise Networking Group. With Viptela and Cisco, we will be able to deliver a comprehensive portfolio of comprehensive on-premises, hybrid, and cloud-based SD-WAN solutions.

With this announcement, Cisco will be able to accelerate the path to developing next generation SD-WAN solutions, by combining Viptelas cloud first network management, orchestration and overlay technologies with industry-leading routing platforms, services, and SD-WAN capabilities from Cisco. Cisco is committed to Viptelas product offering and architecture as well as existing Cisco Intelligent WAN (IWAN) and Meraki SD-WAN solutions. The acquisition of Viptela also supports Ciscos strategic transition toward software-centric solutions that deliver predictable, recurring revenue.

The Viptela team will join the Enterprise Routing team within the Networking and Security Business led by senior vice president David Goeckeler. After the acquisition closes, Viptela and Cisco engineering teams will be working closely together to enhance Ciscos SD-WAN offering and ensure continued support for our customers.

Cisco will acquire Viptela for $610 million in cash and assumed equity awards. The acquisition is expected to close in the second half of calendar 2017, after having completed all of the customary closing conditions and regulatory review.

For more information about Ciscos intent to acquire Viptela, please visit our blog.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products, and partners help society securely connect and seize tomorrows digital opportunity today. Discover more at newsroom.cisco.com and follow us on Twitter at @Cisco.

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Forward-Looking Statements

This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding Ciscos ability to deliver a comprehensive portfolio of comprehensive on-premises, hybrid, and cloud-based SD-WAN solutions, Ciscos ability to accelerate the path to developing next generation SD-WAN solutions, by combining Viptelas cloud first network management, orchestration and overlay technologies with industry-leading routing platforms, services, and SD-WAN capabilities from Cisco, ensuring continued support for customers, the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding Viptela personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due a variety of factors, including, among other things, obtaining regulatory approval of the acquisition or that other conditions to the closing of the transaction may not be satisfied, the potential impact on the business of Viptela due to the uncertainty about the acquisition, the retention of employees of Viptela and the ability of Cisco to successfully integrate Viptela and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Ciscos most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.

LINK:	https://newsroom.cisco.com/press-release-content?type=press-release&ar...
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