Cisco says it is acquiring Cariden because global telcos are converging their IP and optical networks to address exploding Internet and mobile traffic growth and complex traffic patterns, and Cariden has the products to help it success in that area.
Cariden's capacity planning and management tools for IP/MPLS (Multi-Protocol Label Switching) networks which have been deployed by many of the world's leading fixed and mobile network operators. After the acquisition they will be integrated into Cisco's Service Provider Networking Group to “enable multilayer modelling and optimisation of optical transport and IP/MPLS networks”.
“Cariden's products and technology will advance Cisco's nLight technology for IP and optical convergence," said Surya Panditi, senior vice president, Cisco's Service Provider Networking Group. “The acquisition also supports our Open Network Environment (ONE) strategy, by providing sophisticated WAN orchestration capabilities. These capabilities will allow service providers to improve both the programmability of their networks and the utilisation of existing network assets across the IP and optical transport layers.
Given the widespread convergence of IP and optical networks, Cariden's technology will help carriers more efficiently manage bandwidth, network traffic and intelligence. Cisco says the acquisition signals the next phase in its packet and optical convergence strategy, and further strengthens its ability to lead this market transition in networking.
Upon the close of the acquisition, Cariden employees will be integrated into Cisco's Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company's Software and Applications Group
Under the terms of the agreement, Cisco will pay approximately US$141 million in cash and retention-based incentives in exchange for all shares of Cariden. The acquisition is subject to various standard closing conditions and is expected to be completed in the second quarter of Cisco's fiscal year 2013.