Cisco is expanding its enterprise portfolio with the acquisition of software company BroadSoft.
The networking vendor will pay $1.9 billion in the deal, which has now been cleared by the Board of Directors of both companies.
Founded in 1998, US-based BroadSoft offers a cloud-based portfolio of voice and contact centre solutions designed for the SME market which are sold via service provider partners.
These include BroadSoft Business, a hosted enterprise comms platform, and customer-facing platforms designed for education, hospitality and government.
The acquisition will combine these solutions with Cisco’s on-premise suite of collaboration services and strength in the larger enterprise market.
The deal is expected to close during the first quarter of 2018, after which BroadSoft employees will join Cisco’s Unified Communications Technology Group under GM Tom Puorro.
Until then the two companies will continue to operate separately.
BroadSoft netted total revenues of $341 million in 2016, up 22 percent year-on-year, while net income rose 300 percent to £0.8 million.
Rowan Trollope, Senior Vice President and General Manager of Cisco's Applications Business Group, said the buy-out would allow the two companies to provide collaboration capabilities across every segment of the market.
Michael Tessler, CEO of BroadSoft, said: "As businesses continue to move toward the cloud in search of simplicity and speed, joining Cisco will allow us to deliver best-in-class collaboration tools and services.
Cisco’s revenues for the second quarter of 2017 were $11.9 billion, down one percent year-on-year, while net income rose seven percent to $2.5 billion.
The firm announced in May that it was cutting another 1,100 jobs as part of its restructuring efforts.