Cisco to buy Israeli mobile network software maker Intucell for $475 mn

Cisco Systems Inc, the world's largest computer networking equipment maker, yesterday struck a deal to buy Israeli mobile network management software maker Intucell for about $475 million in cash in order to expand its mobile network management offerings.

Under the terms of the deal, Cisco will pay around $475 million in cash and retention-based incentives and expects the acquisition to close in the third quarter of its fiscal year 2013.

Privately held, Ra'anana, Israel-based Intucell provides advanced self-optimising network (SON) software, which enables mobile carriers to plan, configure, manage, optimise and heal cellular networks automatically, according to real-time changing network demands.

Intucell  is backed by Bessemer Partners, a venture capital fund that has invested in other companies like LinkedIn, Skype, Staples, VeriSign and Yelp.

Cisco said that the acquisition will enhance its commitment to global service providers by adding a critical network intelligence layer to manage and optimise spectrum, coverage and capacity, and ultimately the quality of the mobile experience.

The proliferation of connected mobile devices, faster network speeds, and growing demand for high-bandwidth applications and services are driving greater network traffic and complexity.  As mobile service providers continue to face increased end-user demand, the need to optimise network bandwidth, usage and services is increasing.