Cisco Buys Memory Maker Whiptail For $415M
SAN JOSE, Calif. (AP) -- Cisco Systems said Tuesday it will acquire computer memory maker Whiptail for $415 million in cash and incentives.
Privately held Whiptail is based in Whippany, N.J. It makes solid state memory systems that allow organizations process data faster and make their data centers more effective.
This is the latest in a series of small acquisitions by Cisco aimed at diversifying the company's products. In July, the company said it will buy cybersecurity company Sourcefire for $2.37 billion.
Cisco is the world's largest maker of computer networking equipment, like Internet routers and switches, but it has also expanded its software and services side.
Last month, the company said it is cutting about 4,000 jobs, or roughly 5 percent of its workforce at the same time it posted quarterly results that narrowly topped Wall Street expectations. It also offered guidance that was below analyst forecasts.
Cisco Systems Inc. said the Whiptail deal should close during the first quarter of fiscal 2014, which ends in late October.
Its shares picked up 26 cents to $24.18 in afternoon trading.