Northern, WI  11/29/2012 (BasicsMedia)  — Cisco Systems (NASDAQ:CSCO) is a 100 Billion dollar company and they live and die by acquisition, and often,  large technology companies fund a product line which competes with – or collaberates with – one of the revenue lines companies like CSCO need to defend.  This buy vs build strategy (Cisco Systems call’s it build, buy, and partner innovation framework ) which  has worked for the last decade and still seems to be working today.  Cisco Systems is not the only company in the technology space who does this – Intel (NASDAQ:INTC), Oracle (NASDAQ:ORCL) and even cloud companies do this like SalesForce (NYSE:CRM).

Cisco Inc (NASDAQ:CSCO) agreed to buy privately held network traffic-management software maker Cariden Technologies Inc for about $141 million in cash.  Cariden will be integrated into Cisco’s service provider networking group unit, Cisco said

“The Cariden acquisition reinforces Cisco’s commitment to offering service providers the technologies they need to optimize and monetize their networks, and ultimately grow their businesses,” said Surya Panditi, senior vice president and general manager, Cisco’s Service Provider Networking Group. “Given the widespread convergence of IP and optical networks, Cariden’s technology will help carriers more efficiently manage bandwidth, network traffic and intelligence. This acquisition signals the next phase in Cisco’s packet and optical convergence strategy and further strengthens our ability to lead this market transition in networking.”

The acquisition of Cariden exemplifies Cisco’s build, buy, and partner innovation framework and is aligned to Cisco’s strategic goals to develop and deliver innovative networking technologies and provide best-in-class solutions for customers, all while attracting and cultivating top talent. Upon the close of the acquisition, Cariden employees will be integrated into Cisco’s Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company’s Software and Applications Group. Under the terms of the agreement, Cisco will pay approximately $141 million in cash and retention-based incentives in exchange for all shares of Cariden. The acquisition is subject to various standard closing conditions and is expected to be completed in the second quarter of Cisco’s fiscal year 2013. 

The important part of any aquisition is the acreative nature of the deal, and how fast they can be integrated and CSCO is great at the integrations side but has been suspect on the accreative nature of recent deals, but know that John Chambers is one of the best build vs buy guys on Wall Street.

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