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Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion

Cisco Buys Cloud-Networking Leader Meraki for $1.2 Billion
November 19, 2012 11:59AM

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Formed in 2006 by MIT PhD candidates, Meraki was funded by Sequoia Capital and Google. Meraki says it now has 10,000 customers using its cloud managed products including wireless LAN, Ethernet switches, security appliances, and mobile device management. The company name Meraki is Greek for doing something with passion and soul.

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Cisco Relevant Products/Services on Monday announced its latest blockbuster acquisition. The networking giant intends to buy privately held cloud Relevant Products/Services networking leader Meraki for $1.2 billion in cash and retention-based incentives.

San Francisco-based Meraki (pronounced may-rah-kee) offers midmarket customers on-premise networking solutions that can be centrally managed from the cloud. Meraki's cloud-based technology offers customers Wi-Fi Relevant Products/Services, switching, security and mobile Relevant Products/Services device management Relevant Products/Services (MDM). Meraki solutions support BYOD Relevant Products/Services (bring your own device) environments, guest networking, application control, WAN optimization, application firewalls, and other advanced networking services.

"The acquisition of Meraki enables Cisco to make simple, secure Relevant Products/Services, cloud-managed networks available to our global customer Relevant Products/Services base of mid-sized businesses and enterprises. These companies have the same IT needs as larger organizations, but without the resources to integrate complex IT solutions," said Rob Soderbery, senior VP of Cisco's Enterprise Networking Group. "Meraki's solution was built from the ground up, optimized for cloud with tremendous scale Relevant Products/Services, and is already in use by thousands of customers to manage hundreds of thousands of devices."

IT's Mobile-Cloud Era Transformation

Cisco has been chronicling the IT industry's transformation in the mobile-cloud era and working to meet new networking and business enablement challenges with cloud networking as well as device and security services. Meraki is part of that effort. Cisco said Meraki complements and expands its strategy to offer more software Relevant Products/Services-centric solutions to simplify network Relevant Products/Services management, help customers empower mobile workforces, and generate new revenue opportunities for partners.

Cisco said the acquisition will expand its network offerings by providing scalable solutions for midmarket businesses. Cisco also expects Meraki to strengthen its Unified Access platform, which works to make IT more responsive to business innovation by simplifying IT operations and uniting wired and wireless Relevant Products/Services networks, policy and management into one integrated network infrastructure Relevant Products/Services, unlike other competitive offerings. (continued...)

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