BroadSoft

BroadSoft — the American producer of the telecommunication software founded in 1998. Software and company services allow operators of the mobile, fixed and cable networks to offer unified communications through the Internet protocol.

BroadSoft sells the products to large telecommunication companies, like Verizon and AT&T which then resell solutions of vendor to the corporate clients. In 2017 BroadSoft tried to change a business model, agreeing with end buyers directly, but it threatened relationship with large partners. By October, 2017 BroadSoft  works more than in 80 countries.

2017: Cisco buys BroadSoft

On October 23, 2017 the American producer of network equipment Cisco announced acquisition of BroadSoft for $1.9 billion. This transaction the buyer shows once again the aspiration to separate from the core business which is in stagnation — sales of routers and switches, Reuters reports.

Under the terms of the agreement, Cisco will pay $55 for each stock BroadSoft that is 2% more in comparison with a quotation rate for October 20, 2017. After the official statement about BroadSoft sale securities of vendor rose in price for 1.5%, and the stocks Cisco — for 0.6%.

The companies are going to close the transaction in the first quarter 2018. After accomplishment of all formalities, including receiving approval of regulating authorities, the personnel of BroadSoft will join division of Cisco Unified Communications Technology Group.

Thanks to merger of BroadSoft the Cisco corporation will strengthen positions on sales of the systems of unified communications to large telecommunication customers. By estimates of Thomson Reuters, the cost of equity of BroadSoft on the basis of 31 million actions which are in circulation is $1.71 billion. Approximately the company had such market capitalization on October 20, 2017.^[1]

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