“Made in the USA” is back on the acquisition radar screen at tech giant Cisco.
After saying he would look outside the U.S. for growth and acquisitions, Cisco (Nasdaq: CSCO) Chairman and CEO John Chambers has now made two straight buys in the U.S.
The latest deal came Thursday when Cisco said it was buying California-based Composite Software in a deal worth some $180 million plus employee-retention incentives.
Composite, based in San Mateo, Calif., is a privately held company whose software helps businesses quickly gather and comb through data. Cisco sells routers, switches, software and services to corporate customers and government agencies around the world.
The deal is expected to close in the first quarter of fiscal 2014.
last month, Cisco agreed to buy Georgia-based JouleX in a deal worth more than $100 million.
The two U.S.-based acquisitions ended a streak of several deals in which Cisco bought overseas firms. Chambers has been very critical of U.S. tax policy and has said he would pursue growth initiatives overseas. For example, he has been in israel this week touting growth there.
“Cisco’s strategy is to create a next generation IT model that provides highly differentiated solutions to help solve our customers’ most challenging business problems,” said Gary Moore, Cisco’s chief operating officer, about the Composite deal. “By combining our network expertise with the performance of Cisco’s Unified Computing System and Composite’s software, we will provide customers with instant access to data analysis for greater business intelligence.”
Cisco describe Composite;s technology as an addition to its Smart Services platform “by connecting data and infrastructure. Through this connection, companies will be able to better leverage network knowledge (APIs) and programmability, which maximizes the benefits of data virtualization. As with the transition from physical servers to server virtualization and from physical networks to network virtualization, together Cisco and Composite will accelerate the shift from physical data integration to data virtualization for customers and partners.”
Cisco operates its second largest corporate campus in RTP.
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