Cisco said Thursday it has agreed to acquire US-based software company Cloupia, to extend its data center portfolio and help better manage converged infrastructure solutions.
Under the deal, Cisco will pay $125 million in cash and retention-based incentives in exchange for all shares of Cloupia.
Upon the close of the acquisition, which is expected to be complete in the second quarter of 2013, Cloupia employees will be integrated into Cisco’s data center group.
Cisco said the Cloupia acquisition could help the networking giant address the increasing need for simplified management systems across compute, storage, network and virtualization functions.
“Cisco’s data center strategy is based on the premise of making it easier for customers to deploy a unified and integrated infrastructure that is efficient, fast, and flexible,” said David Yen, SVP and GM, Cisco data center business group.
“The addition of Cloupia’s automation software enhances the efficiency of such unified data center infrastructures, helping to accelerate the transition from physical to cloud environments more quickly and effectively.”