Cisco (CSCO) is acquiring Starent (STAR), an IP-based mobile infrastructure company, in a deal valued at $2.9 billion.
Cisco will pay $35 a share in cash for the company, a 20% premium from yesterday when the stock closed at $29.03.
In the release announcing the deal, Starent’s President and CEO, Ashraf Dahod said “Combining Cisco’s strength in Video and IP with Starent Networks’ leading mobile infrastructure solutions,” will provide better multimedia experiences accross cellular networks in the future.
This is the second big acquisition for Cisco this month. On October 1st, it paid $3 billion for video conferencing company Tandberg.