Cisco Systems Inc. confirmed on Wednesday that it has conceded to acquiring Israeli company, Leaba Semiconductor worth $350 to $400 million. Leaba is a fabless semiconductor company that delivers innovative solutions for important infrastructure difficulties.
Leaba started as Arena Semiconductor by CEO Eyal Dagan and CTO Ofer Eini. The latter set up and sold Dune Networks for $200 million to Broadcom in 2009. Both people got $50 million each from the deal.
Bessemer Venture Partners and Pitango Venture Capital are two of the Leaba investors holding 13% and 15% respectively. Dagan and Eini each have only 2% while 53% of the firm is held in stock and not understood who holds the share, according to Globes.
Cisco said, "Cisco is continually examining the best options that will allow it to provide future needs for the market, including, companies related to semiconductors. We check various strategic options including: acquisitions, partnerships and integrations. When there is any news, we will report it in the acceptable fashion."
Presently, Israel is experiencing inadequacy of computer scientists and engineers that result in advertising job vacancy seeking multinationals to fill in the vacant positions. Cisco employs 1,600 workers in Israel where most work in research and development. It acquired Raanana, an Israel-based Intucell Ltd. for $475 million in 2013, says Bloomberg.
Once the deal closes, the Leaba team will have to relate to Core Hardware Group supervised by Cisco Senior Vice President Ravi Cherukuri. Cisco M&A and venture investment team, Rob Salvagno said that the acquisition "supports continued differentiation of Cisco products."
Silicon Valley Business Journal states that Cisco also announced its intention of purchasing CliQR, a Santa Clara-based cloud management company for $260 million. Earlier last month, the company said that it will acquire Jasper Technologies for $1.4 billion. It is a Santa Clara cloud company mainly used by telecoms, businesses and converging with the Internet of Things.
The acquisition only shows that Cisco still desires to lead the network hardware space while exhausting its cash on a number of multiple ventures that accelerate transitions in hardware and cloud services.
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