Cisco to Buy Israel’s Leaba Semiconductor for About $320 MillionGwen Ackerman
Cisco Systems Inc. intends to spend about $320 million for Leaba Semiconductor, an Israeli company currently in stealth mode with expertise in network equipment.
“Leaba is a team with a strong and successful track record of designing leading edge networking semiconductors that provide innovative solutions to address significant infrastructure challenges,” Cisco executive Rob Salvagno said in a blog post. The deal will also include assumed equity awards and retention-based incentives, Salvagno said.
The news follows Cisco’s Tuesday announcement of the acquisition of Cliqr Technologies Inc. for about $260 million to enhance offerings in cloud computing management software and services. Leaba’s website doesn’t elaborate on what its technology provides, but the Israeli news website Ynet said it allowed for more efficient and intelligent routing of Internet traffic.
According to the IVC Research Center, Leaba was founded by Eyal Dagan and Ofer Iny, who in 2009 sold their previous chip company Dune Networks to Broadcom Corp. for $178 million. Their team of 45 is highly experienced, a person familiar with the company said earlier, before Cisco confirmed the deal.
Israel is currently suffering from a dearth of engineers and computer scientists, leading some multinationals to advertise jobs on the radio in a bid to fill open positions.
Cisco has more than 1,000 employees in Israel, many of them working in research and development, according to IVC. In 2013, it bought the Raanana, Israel-based Intucell Ltd. for $475 million.