Cisco to acquire femtocell maker Ubiquisys

As mobile service providers around the world increase voice and data capacity to serve the rapidly growing use of Internet-enabled devices, offloading traffic to small cell networks is a cost-effective way to increase capacity and make better use of spectrum assets. Small cells deliver their signal over a shorter range, which allows mobile users to get a faster, more consistent voice and data experience. Ubiquisys' small-cell solution adds dynamic intelligence at the edge of the network, enabling service providers to better monetise and optimise their mobile networks.

Ubiquisys' indoor small-cell expertise and focus on intelligent software for licensed 3G and LTE spectrum, coupled with Cisco's mobility portfolio and WiFi expertise, will enable a comprehensive small-cell solution for service providers that supports the transition to next-generation radio access networks. Together, Ubiquisys and Cisco will offer a differentiated connected experience to the end-user by providing service providers with a comprehensive solution that extends an intelligence layer across the mobile network.

Upon the close of the acquisition, the Ubiquisys employees will be integrated into the Cisco Mobility Business Group, reporting to Partho Mishra, VP and GM, service provider small cell technology group. Under the terms of the agreement, Cisco will pay about $310 million in cash and retention-based incentives to acquire the entire business and operations of Ubiquisys. The acquisition is expected to close in Q4 of Cisco's fiscal year 2013, subject to customary closing conditions.