Yesterday, Cisco has announced intent to acquire an Israeli startup named Intucell. The amount to be spent by Cisco to acquire Intucell is $475 million. The acquisition will enable Cisco to tap into the mobile telecom market.
Intucell was founded in 2008 to tap into the newly rising Self Organizing Network (SON) space. The software made by Intucell let wireless networks dynamically adjust their cellular grids and optimize the network for high data throughput and low congestion.
In 2010, the startup received $6 million Series A funding from Bessemer Venture Partners (BVP) for about half the stack of the firm. Bob Goodman of BVP later introduced Intucell to AT&T which secured a deal of $50 million to use Intucell’s SON solution to be used throughout AT&T’s network.
When Cisco was trying to strengthen its portfolio of solutions to tap into the mobile network business, it noticed Intucell. The inter-operable SON software of Intucell seemed to be good bet. Hence, the networking giant decided to acquire all of Intucell’s business and operations for $475 million on cash and retention-based incentive. The deal will close by Cisco’s 2013 fiscal year.
Thanks to: AllThingsD