Photograph by Victor J. Blue/Bloomberg
Sky High for Wi-Fi
When Cisco Systems agreed to buy Wi-Fi equipment maker Meraki in November, the $1.2 billion price tag sent a clear message: It's not just newfangled social-media startups that are benefiting from huge valuations.
The deal came as a surprise to many industry watchers because of the price and the company -- Meraki isn't a household name. The San Francisco-based company is thriving: It expects about $100 million in bookings this year. But that means Cisco scored the company for roughly 12 times that figure, a rich valuation even by Silicon Valley's inflated standards these days.