Cisco Acquires CliQr For $260 Million

The could management provider, Cliqr, is acquired by Cisco for $260 million.

Cisco Systems is planning to acquire Cliqr for $260 million in efforts to get into the growing market of cloud management and computing. The CEO of the networking giant company, Chuck Robbins, believes that this acquisition will aid companies in adapting the hybrid cloud service easily.

Cliqr Technologies is startup in California, San Jose, providing technology to various companies required for the management of software apps to maintain their datacenters. The strategy that Cisco Systems is trying here is not to compete with major cloud computing businesses but instead become an intermediary of such businesses and their customers, which it can achieve through acquiring Cliqr.

The Information Technology organization is now paying Cliqr with $260 million. It has 100 employees according to the CEO, Chuck Robbins. By doing so, the company will be able to recast its products in an enhanced manner which is compatible with the market of networking today. Cisco is expanding its business from not only developing hardware and software but is now making new additions to its portfolio, which will help its users manage and meet their computing needs in a friendlier and easier way.

This recent acquisition by Cisco will help the company strategy of helping their customers in a better and more flexible way through the provision of more resources of cloud computing in a unique manner. The company made an announcement just a month ago of its plans to acquire another business in the same market and category, Jasper Technologies Inc. costing its almost $1.4 billion. It is planning to do so with hope to offer more products to its customer in the market for the Internet of Things tech, so that users can easily manage their appliances via the internet.

Cisco Systems is no longer staying in a box and is expanding the services it offer through acquiring companies in the networking business with their employees and its own working together as one singular team to come up with most innovative tech there to date. The company it is acquiring now, Cliqr, raised $38 million in 2015, April, it was founded five years ago by VMware Inc. and has major popular investors including Google’s arm, Polaris Partners and many others.

The CEO of Cisco is aware of the fact that most of the technology in the future is going to be cloud based and he known what the business needs to stay ahead of the competition and let the future be as successful for the company as possible.

Avago Is All Set To Buy Out Broadcom Corporation

Avago invests $37 billion to buy Broadcom.

There is a dire need of cheaper chips and innovative products that can assist in powering gadgets enabled with Internet of Things (IoT). This has helped in driving consolidation in the tech sector. A latest merger in the sector is of Avago and Broadcom, which is said to be a $37 billion.

This decision by Avago to buy Broadcom Corporation is said to be the largest merger in the history of chipmakers. This company, which was said to have a negligible impact on the fraternity, is now transforming itself into a key game player. There have been several similar deals in the semiconductor industry where NXP Semiconductors offered to buy Freescale for $11.8 billion. Avago also tried to buy Freescale at that point of time.

Likewise, Intel has also been in a negotiation phase with Altera, which is likely to happen for $14 billion. Recently, the biggest deal for Avago was with the LSI Corp., the renowned chipmaker, which the company had bought for $6.6 billion the previous year.

The company, along with Broadcom, previously announced about a possible merger in October in the fiscal year of 2014, but the deal failed since they could not agree on a single price reported by people familiar with the matter. Avago Technologies did not give up and approached Broadcom in April 2015 again by increasing the offer. This continued but both businesses did not agree.

Avago, which enjoys a ‘big name’ in the industrial and wireless market is now offering around $17 billion in cash to the shareholders of Broadcom Corp., where the stocks of Altera is valued at $20 billion. Broadcom Corporation has established a niche market for its connectivity chips that is now used by various smartphone companies. The prominent clients of the acquired company include Samsung Electronics and Apple Inc.

The company has made a in intelligent decision to buy Broadcom, since the merger can help it to explore new dimensions. The acquisition is a ‘big name’ that has a great market share along with a fancy portfolio. This provides an opportunity to Avago to cash moreover. These other potential benefits of this buyout will help the company in making their bargaining position better with manufacturers.

Hence, concisely, Avago might have paid a heavy amount now to buy Broadcom but this merger will benefit the company largely in the long term. Considering the prospect of it, it will become more stable in the upcoming times.