WASHINGTON — Gaithersburg, Maryland-based software maker BroadSoft will be acquired by Cisco Systems for $1.9 billion in cash.
BroadSoft, founded in 1998 by former Alcatel USA executive Michael Tessler and Celcore executive Scott Hoffpauir, according to Bloomberg data, makes software used by mobile and cable companies for voice and multimedia services over their IP-based networks.
The company has about 1,700 employees. It went public in 2010.
BroadSoft has been working with advisers on strategic alternatives, including the possible sale of the company.
“We are excited about this transaction, which represents the culmination of a robust process undertaken by BroadSoft’s board of directors to maximize shareholder value,” said Tessler, BroadSoft’s CEO, in a statement.
“”BroadSoft’s hosted offerings, sold through the Service Providers and aimed at small and medium businesses, are highly complementary to Cisco’s on-premises and enterprise-centric offerings,” he said.
Cisco has been growing its business through a series of acquisitions and recently completed its 200th acquisition.
The BroadSoft acquisition is expected to close during the first quarter of 2018. BroadSoft employees will join Cisco’s Unified Communications Technology Group.
