Cisco splashes out US$3.2 billion to snap up WebEx

Networking giant Cisco has beefed up its unified communications vision with the purchase of collaboration applications supplier WebEx for US$3.2 billion. Cisco claims the deal will extend its vision of unified communications, especially in the SMB space.

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By  Administrator Published  April 1, 2007

Networking giant Cisco has beefed up its unified communications vision with the purchase of collaboration applications supplier WebEx for US$3.2 billion. Cisco claims the deal will extend its vision of unified communications, especially in the SMB space.

"As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently," said Charles H. Giancarlo, chief development officer at Cisco. "The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications."

"Cisco believes the network is a platform for all forms of communications and collaboration, and WebEx's technology and services portfolio complement Cisco's leadership in the unified communications and collaboration market, while providing Cisco with a new and unique business model to expand its presence in the fast-growing SMB market," Giancarlo continued.

Cisco will launch a cash bid of US$57 per share for all outstanding WebEx shares and take on outstanding share-based awards. The total purchase price is around US$3.2 billion, or US$2.9 billion net of WebEx's existing cash balance.

"Cisco and WebEx share a vision of web collaboration as a key to accelerating business processes and critical to durable competitive advantage," said Subrah S. Iyar, CEO of WebEx. "Cisco's global
reach and customer focus will help us extend our core web collaboration applications and continue to broaden the services we offer through the WebEx Connect platform."

Networking giant Cisco has beefed up its unified communications vision with the purchase of collaboration applications supplier WebEx for US$3.2 billion. Cisco claims the deal will extend its vision of unified communications, especially in the SMB space.

"As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently," said Charles H. Giancarlo, chief development officer at Cisco. "The combination of Cisco and WebEx will deliver compelling solutions accelerating this next wave of business communications."

"Cisco believes the network is a platform for all forms of communications and collaboration, and WebEx's technology and services portfolio complement Cisco's leadership in the unified communications and collaboration market, while providing Cisco with a new and unique business model to expand its presence in the fast-growing SMB market," Giancarlo continued.

Cisco will launch a cash bid of US$57 per share for all outstanding WebEx shares and take on outstanding share-based awards. The total purchase price is around US$3.2 billion, or US$2.9 billion net of WebEx's existing cash balance.

"Cisco and WebEx share a vision of web collaboration as a key to accelerating business processes and critical to durable competitive advantage," said Subrah S. Iyar, CEO of WebEx. "Cisco's global
reach and customer focus will help us extend our core web collaboration applications and continue to broaden the services we offer through the WebEx Connect platform."

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