Cisco buying BroadSoft for $1.9 billion
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.