Cisco Buying Starent for $2.9B

Technology giant Cisco (NASDAQ:[[ticker:CSCO]]) plans to acquire Tewksbury, MA-based Starent Networks (NASDAQ:[[ticker:STAR]]), a provider of wireless infrastructure products used to transfer data to mobile devices such as smartphones, for a whopping $2.9 billion, Cisco reports this morning. Both companies’ boards of directors have approved the deal, which is expected to close in the first half of 2010. The New York Times provides some insights here about how Cisco’s purchase of Starent follows a previous deal to grow its presence in the market for wireless communications network infrastructure products. Starent’s 2007 IPO, which brought in $126 million, was considered a successful exit for the company’s venture backers, which included Boston-area firms Highland Capital Partners, Matrix Partners, and North Bridge Venture Partners.

Author: Ryan McBride

Ryan is an award-winning business journalist who contributes to our life sciences and technology coverage. He was previously a staff writer for Mass High Tech, a Boston business and technology newspaper, where he and his colleagues won a national business journalism award from the Society of American Business Editors and Writers in 2008. In recent years, he has made regular TV appearances on New England Cable News. Prior to MHT, Ryan covered the life sciences, technology, and energy sectors for Providence Business News. He graduated with honors from the University of Rhode Island in 2001 with a bachelor’s degree in communications. When he’s not chasing down news, Ryan enjoys mountain biking and skiing in his home state of Vermont.