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Cisco purchases Gaithersburg-based BroadSoft for nearly $2B

BroadSoft, the Gaithersburg company that provides cloud-based telecommunications services for business across the country, has announced that it will be acquired in the next year by California-based Cisco. The price tag? Nearly two billion dollars.

BroadSoft has several key qualities that make this acquisition particularly attractive to a company such as Cisco. First, BroadSoft has reported healthy income over the past few years, including total revenue of over $340 million in 2016. The company, although headquartered in Gaithersburg, includes 13 offices outside of North America. It also has a history of partnerships with large communications companies such as Verizon.

Strategically speaking, this acquisition will also allow Cisco to grow: the combination of BroadSoft’s cloud-based telecommunications services and Cisco’s more hardware-based meeting and collaboration services will allow Cisco to further integrate itself into the telecommunications market across the country.

The news originally broke at the end of August that BroadSoft was considering a sale. The announced offer price of $1.71 billion represents a significant increase over BroadSoft’s stock prices since that time.

Though the acquisition has been announced, including the intended price, it will not be complete for some time. It’s hard to estimate a timeline for most mergers and acquisitions, as the process can take months and months – particularly when two such large companies are involved. The process involves many complex steps, and a conscientious participant will not want to skip any of them. However, this acquisition of BroadSoft by Cisco is scheduled to close during the first quarter of 2018.

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