Monday, 28 July 2008

Cisco to Acquire Pure Networks

Cisco made public today its intent to purchase privately held Pure Networks, a provider of networking-management solution that allows users to set up and manage a home network...

Cisco made public today its intent to purchase privately held Pure Networks, a provider of networking-management solution that allows users to set up and manage a home network and connect a range of devices, applications and services within a home.

Cisco is placing a price tag of 120 million dollars on this deal with the hopes that the Seattle-based Pure Networks will not only provide it with a fully integrated home networking management solution but will also serve as a foundation for the development of new applications, tools and capabilities for consumers to use in an increasingly "connected life" at home, at work and on the go.

"With the rapid proliferation of networking technology and new consumer electronics devices, the ability to quickly and easily connect to a range of devices, content and services throughout the home is becoming paramount to achieving a satisfying consumer experience," said Ned Hooper, senior vice president for Cisco's Corporate Development and Consumer Group.

"Pure Networks' network-management innovations will provide Cisco and Linksys with a key underpinning to take home networking to the next level of ease of use."

Cisco believes the industry is amid a transition from Home Networking 1.0, in which home networks are largely designed to share a broadband connection that links PCs and peripherals, to Home Networking 2.0, in which the multimedia-enabled home will be comprised of a multitude of disparate network devices, applications and services that are connected to one another.

Pure Networks currently partners with Cisco to provide the software infrastructure and tools used to create the Linksys Easy Link Advisor (LELA) which allows a consumer to set up, organize, manage, secure and use a home network.

The acquisition of Pure Networks is expected to be complete in Cisco's first quarter of fiscal year 2009. Upon the close of the acquisition, Pure Networks' employees will remain in Seattle and be integrated into Linksys.