Cisco Systems Inc. (Nasdaq: CSCO) has confirmed that it will acquire Israeli startup Leaba Semiconductor. Cisco head of M&A Rob Salvagno said, "Under the terms of the agreement, Cisco will pay $320 million in cash and assumed equity awards, plus additional retention based incentives."
He said, "Today, I am pleased to announce Cisco’s intent to acquire Leaba Semiconductor, a venture-backed fabless semiconductor company based in Israel. Leaba is a team with a strong and successful track record of designing leading edge networking semiconductors that provide innovative solutions to address significant infrastructure challenges."
"This acquisition advances our innovation strategy, supports continued differentiation of Cisco products and delivers on our goal to provide best-in-class solutions for our customers. By combining Leaba’s semiconductor expertise with the Cisco engineering team, we will accelerate our plans for Cisco’s next generation product portfolio and bring new capabilities to the market faster."
The Leaba team will report into Cisco’s Core Hardware Group, led by Senior Vice President, Ravi Cherukuri.
This will be Cisco's 12th acquisition in Israel.
Based in Caesarea, Leaba Semiconductor was founded in 2014 by CEO Eyal Dagan and CTO Ofer Eini who set up and sold Dune Networks to Broadcom in 2009 for $200 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016