Cisco to acquire Israeli startup Intucell for $475m

Networking hardware giant Cisco is to acquire privately held network software provider Intucell for about $475m (£300m).

Intucell, headquartered in Ra'anana, Israel, was founded in 2008 and provides self-optimising network (SON) software for carriers, enabling them to adjust their cellular grid to maximise mobile traffic speeds by managing and optimising spectrum.

The deal will add to Cisco's growing portfolio in network management. Last year, the firm acquired device management software provider ClearAccess and network data analysis software provider Truviso.

In a blog post, Hilton Romanski, vice-president, head of corporate business development at Cisco, said that the acquisition would add to the company's product suite at a time when mobile use is growing exponentially.

"This acquisition will allow Cisco to extend network intelligence and tightly align different software elements across our product portfolio. It also reinforces our commitment to service provider customers and strengthens our expertise in mobility," he said.

"As mobile service providers continue to face increased end-user demand, the need to dynamically manage network bandwidth, usage and services is increasing. Intucell's SON software platform addresses these challenges by examining the network, identifying issues, and intelligently managing network traffic in real time," he added.

Cisco said that Intucell employees will be integrated with Cisco's service provider mobility group and report to Shailesh Shukla, vice-president and general manager of the software and applications group.

Cisco will pay about $475m in cash and "retention-based incentives" to acquire the whole business and operations of Intucell.

The acquisition is expected to close in the third quarter of Cisco's fiscal year 2013, subject to regulatory approval.