Cisco Pays $1.9B For Gaithersburg-Based BroadSoft

GAITHERSBURG, MD — The multinational technology giant Cisco Systems Inc. completed a nearly two billion-dollar acquisition of BroadSoft, a Gaithersburg-based software firm, according to a news release from Cisco. San Jose, California-based Cisco Systems Inc. bought BroadSoft in a $1.9 billion acquisition, paying $55 per share, in cash, for BroadSoft. The deal was completed Friday, Feb. 2, the company said.

Cisco will acquire BroadSoft's cloud calling and and contact center solutions, joining Cisco’s calling, meetings, messaging, customer care, hardware endpoints and services portfolio, the release states.

"By combining BroadSoft's open interface and standards-based solutions primarily delivered via Service Provider partners, with Cisco's existing portfolio, the combined company will offer best-of-breed solutions for businesses of all sizes which will be delivered through VAR and Service Provider partners," Cisco's news release states.

BroadSoft started in 1998 and went public in 2010. Former CEO Michael Tessler and the rest of the BroadSoft company will join Cisco's Unified Communications Technology Group, led by Vice President and General Manager Tom Puorro.

The CEO of Cisco, Chuck Robbins, Tweeted Friday: "A warm welcome to the @BroadSoftNews team - we are thrilled to have you as part of @Cisco and we look forward to driving greater innovation for our customers together!"

Cisco and BroadSoft alerted NASDAQ of the completion of the acquisition and requested that NASDAQ file a notification of delisting with the Securities and Exchange Commission (the "SEC") on BroadSoft's behalf, the news release states. The delisting of BroadSoft's common stock from the NASDAQ stock market will officially become effective on Feb. 12.