SAN JOSE, CA--(Marketwired - Nov 20, 2015) - Today, Cisco (
Today, less than 10 percent of the conference rooms in the world are connected via video. However, there is a massive market shift underway in collaboration -- customers want the ability to easily connect from anywhere, from dedicated hardware endpoints to sharing video on a mobile phone. Cisco's collaboration business is already seeing the impact of this trend, with 17 percent year-over-year growth in the first quarter of fiscal year 2016. As the momentum continues, there is a need to deliver solutions that will connect any system, regardless of vendor, at a scale that is dramatically higher than ever before. Acano's technology and expertise will enable us to accelerate our development in the key areas of interoperability and scalability.
- Interoperability : In this rapidly growing industry, customers expect any new collaboration solution to work with their existing technology. Acano shares Cisco's commitment to interoperability; they have focused on developing products that connect a wide variety of endpoints and systems from all the major collaboration vendors. Their technology further enhances Cisco's ability to deliver video from the cloud to any screen. This includes enhanced support for Microsoft's proprietary protocols and mobile browsers through WebRTC support.
- Scalability : As collaboration adoption grows, so does the need for infrastructure models that can support a higher capacity of users and systems than customers have ever required before. This is important in both cloud-based environments and hybrid environments where customers have a mix of cloud and on premises solutions. Acano has solved several key challenges in delivering collaboration at dramatically increased scale -- with both dedicated hardware appliances and virtualized software options that allow customers to connect tens of thousands of users and meeting rooms without compromising on the audio and video experience.
With Acano, we believe we can accelerate our collaboration momentum and bring new capabilities to market faster. Together, Cisco and Acano will be able to capture the expanding market opportunity in collaboration and deliver open and interoperable solutions whether in the cloud or via a hybrid model.
"People, companies and organizations are more geographically dispersed than ever before, and collaboration is essential to helping teams increase productivity and drive growth," said Rob Salvagno, vice president, Cisco Corporate Development. "Acano's innovations make it easier for customers to collaborate when, where and how they want. Together, we will help our customers to extend collaboration to every room, every screen and every user."
The Acano team will join the Cisco Collaboration Technology Group led by Rowan Trollope, senior vice president and general manager. Under the terms of the agreement, Cisco will pay $700 million in cash and assumed equity awards, plus additional retention based incentives for Acano employees who join Cisco. The acquisition is expected to close in the third quarter of fiscal year 2016, subject to customary closing conditions including regulatory review.
Visit Rob Salvagno's blog for more information about Cisco's intent to acquire Acano.
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Forward-Looking Statements
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding Acano personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of Acano due to the uncertainty about the acquisition, the retention of employees of Acano and the ability of Cisco to successfully integrate Acano and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
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