Oct 23, 2017

Cisco buying BroadSoft for $1.9 billion

Dan Primack, author of Pro Rata

Photo via Smith Collection/Gado/Getty Images

Cisco Systems this morning announced that an agreement to buy BroadSoft for $1.9 billion, making it Cisco's eighth acquisition of the year (and second-largest, behind AppDynamics). The $55 per share price works out to a 28% premium over where BroadSoft shares were trading before it announced plans to explore strategic alternatives.

Thesis: Cisco M&A lead Rob Salvagno tells Axios that the strategic play here is about collaboration software. Most of Cisco's current product is on-premise and focused on large enterprise, while BroadSoft is more cloud-based and focused on small and mid-sized businesses.

Forward-looking: Don't expect Cisco's M&A engine to slow down any time soon, particularly as it continues to diversify from its hardware roots.

Human resources: Salvagno suggested that merger-related layoffs could be small do to the lack of overlap, but said those decisions won't be made until post-close (slated for Q1 18).

Go deeper

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Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Vice President Joe Biden is calling George Floyd’s dying words “a wake-up call for our nation,” and criticized President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address drew a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 6,302,318 — Total deaths: 376,322 — Total recoveries — 2,716,924Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 1,812,125 — Total deaths: 105,192 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Protests against police brutality threaten coronavirus response.
  4. Business: Coronavirus could lower GDP by $15.7 trillion — More than 1 in 6 black workers lost jobs between February and April.
  5. Climate: The alarm over climate financial risk gets louder because of coronavirus.
  6. Media: Interest in the George Floyd protests has soared past the coronavirus.

The business of tear gas

Illustration: Eniola Odetunde/Axios

U.S. forces yesterday used tear gas on peaceful protesters outside the White House gates, prior to a declared curfew, clearing a path for President Trump to visit a riot-damaged church for a photo opportunity.

The state of play: Two of the largest U.S. producers of tear gas are owned by private equity firms, but those firms have no interest in discussing their ownership.