The information networking firm bought Starent, a supplier of Internet Protocol (IP) based mobile infrastructure solutions, for $2.9 billion or the equivalent of $35 per share.
Starent is now part of Cisco's new Mobile Internet Technology Group within the Service Provider Group (SPG) following the completion of the deal.
Ashraf Dahod, former president and chief executive officer of Starent, has been appointed senior vice- president and general manager of the new group.
He will work with Pankaj Patel, also a senior vice-president and general manager.
Cisco explained that it made the move as the mobile internet industry has reached an âinflection pointâ with the use of IP-enabled smartphones becoming increasingly widespread.
Figures from the Cisco Visual Networking Index predicted that the amount of global mobile data traffic is expected to increase by more than double every year up to 2013.
By Jim Ottewill