Cisco acquiring Starent Networks for $2.9 billion

Cisco announced a definitive agreement to acquire IP-based mobile infrastructure solutions provider Starent Networks for $2.9 billion, continuing the networking services giant's investment into the mobile video segment in the wake of its recent $3 billion agreement to purchase videoconferencing systems manufacturer Tandberg. Per terms of the agreement, Cisco will pay $35 per share in cash in exchange for each share of Starent Networks and assume outstanding equity awards--the acquisition has been approved by the boards of directors of both companies, and is expected to close during the first half of 2010.

Upon completion of the deal, Starent Networks will become Cisco's new Mobile Internet Technology Group, led by Starent president and CEO Ashraf Dahod. "Cisco and Starent Networks share a common vision and bring complementary technologies designed to accelerate the transition to the mobile Internet, where the network is the platform for service providers to launch, deliver and monetize the next generation of mobile multimedia applications and services," said Cisco senior vice president/general manager Pankaj Patel in a prepared statement. Cisco recently forecast that by 2013, about 60 percent of data traveling across mobile networks will originate via video content.

For more on the Cisco/Starent deal:
- read this release