Cisco Wagers $1.4B on IoT with Jasper Acquisition
Cisco Systems Inc., the largest maker of networking equipment, said it will acquire closely held Jasper Technologies Inc. for $1.4 billion, bolstering its offerings in the growing market for technology that lets people manage devices over the Internet.
Cisco agreed to acquire Jasper Technologies, which offers a cloud-based IoT service platform, for $1.4 billion in cash and assumed equity awards, plus additional retention based incentives.
Jasper, which is based in Santa Clara, California, enables the connectivity and management of any device - from cars to jet engines to implanted pacemakers - over the cellular networks of service providers.
The company said its Software as a Service (SaaS) platform connects devices on behalf of over 3,500 enterprise customers over the networks of 27 leading service providers and in over 100 countries.
Jasper has a predictable, recurring revenue business.
Cisco said the proposed acquisition enables it to offer a complete IoT solution that is interoperable across devices and works with IoT service providers, application developers and an ecosystem of partners.
Cisco will continue to build upon the Jasper IoT service platform and add new IoT services such as enterprise Wi-Fi, security for connected devices, and advanced analytics to better manage device usage.
“I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognize the value of the Internet of Things,” said Chuck Robbins, Cisco Chief Executive Officer.
“Together, we can enable service providers, enterprises and the broader ecosystem to connect, automate, manage, and analyze billions of connected things, across any network, creating new revenue streams and opportunities.”
“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,” said Jahangir Mohammed, Jasper Chief Executive Officer.
“By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success.”
Jasper CEO Jahangir Mohammed will run the new IoT Software Business Unit under Rowan Trollope, Cisco senior vice president and general manager, IoT and Collaboration Technology Group.
The acquisition is expected to close in the third quarter of fiscal year 2016, subject to customary closing conditions.
Related: How the Internet of Things Transforms Trucking
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