Cisco Buying Starent for $2.9B
Technology giant Cisco (NASDAQ:CSCO) plans to acquire Tewksbury, MA-based Starent Networks (NASDAQ: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.