Pursuant to the agreement, Cisco will pay $55 per share, in cash, in exchange for each share of BroadSoft, or an aggregate purchase price of approximately $1.9 billion net of cash, assuming fully diluted shares including conversion of debt.
The acquisition, which was recently approved by the board of directors of each company, is expected to close during the first quarter of calendar year 2018, subject to customary closing conditions and regulatory review.
Prior to the close, Cisco and BroadSoft will continue to operate as separate companies. Upon completion of the transaction, BroadSoft employees will join Cisco’s Unified Communications Technology Group led by Vice President and General Manager Tom Puorro, under the Applications Group led by Trollope.
The acquisition of BroadSoft aims to reinforce Cisco’s commitment to Unified Communications and enhance its ability to address aging TDM lines to IP technology and cloud native solutions over the coming years. By combining BroadSoft’s open interface and standards-based cloud voice and contact center solutions delivered via Service Provider partners, with Cisco’s meetings, hardware and services portfolio, the combined company will offer improved solutions for businesses of all sizes and deliver a full suite of collaboration capabilities.
Led by Michael Tessler, president and CEO, BroadSoft is a technology provider of cloud PBX, unified communications, team collaboration, and contact center solutions for businesses and service providers across 80 countries. The company provides an open, mobile and secure platform for users and teams to share ideas and work simply to achieve improved performance.