Sundays are usually a pretty quiet day with big announcements generally saved for Monday mornings. Today however was quite different as Cisco Systems sent out a press announcement to confirm their latest acquisition. Their Sunday announcement confirmed that they have come to terms to acquire Meraki in a deal that is estimated to be worth $1.2 billion.
For Cisco Systems, the acquisition of Meraki allows the company to continue to build upon their cloud computing services. Meraki’s products were well received within the industry with some of them allowing networks to be remotely controlled through an online network connection. Prior to being bought out by Cisco, Meraki had strong support behind them with the likes of Sequoia Partners and Google Inc.
Meraki is a fairly new comer on the scene, having arrived in 2006. The concept behind this company was developed by MIT graduates whose intentions were to offer a service to smaller companies which did not have the financial capabilities to operate independent security services and networking. Meraki essentially filled a void with an emphasis on cloud services to reduce their overall fee structure. Over the last six years, thousands of customers have turned to Meraki for their service which was used to control hundreds of thousands of networked products. It is expected that the Cisco, Meraki deal will complete in quarter two of next year.