Cisco to buy Ubiquisys for $310m

April 3, 2013 by admin
Filed under: News

Swindon small cell pioneer Ubiquisys is to be bought by US giant Cisco Systems for $310m.

Ubiquisys is a leading provider of intelligent 3G and LTE (Long-Term Evolution) small-cell (or femtocell) technologies that provides seamless connectivity across mobile networks for service providers and this marks one of the largest European exits in recent months. It follows Mindspeed’s acquisition of picoChip in Bath, NVIDIA’s acquisition of Icera Semiconductor in Bristol and General Dynamics’ acquisition of IP Wireless in Chippenham, all in the wireless sector.

“The acquisition doesn’t just provide Cisco with Ubiquisys’ small cell knowhow; it also gives Cisco experience in working with a broader set of mobile operators,” said Daryl Schoolar, principal analyst at market analyst Ovum. “Ubiquisys provides Cisco much greater market credibility when it comes to 3G and LTE small cells. Cisco will also benefit by having greater control over Ubiquisys’ product development cycle, freeing Cisco from having to rely on the development cycle of third-party partners like IP access.

“Cisco is no stranger to small cells, but that has been primarily through its carrier Wi-Fi efforts,” said Schoolar. “In the licensed spectrum small cell space Cisco has basically been reliant on its femtocell relationship with AT&T. Outside of its work with AT&T, Cisco’s licensed small cell experience has been hard to find. Ubiquisys on the other hand has over 50 customers (vendors and operators) that include Softbank (Japan), SFR (France), and Network Norway. Ubiquisys’ small cell experience greatly bolsters Cisco’s small cell position.

The acquisition of Ubiquisys complements Cisco’s mobility strategy along with the recent acquisitions of BroadHop and Intucell, reinforcing in-house research and development, such as service provider Wi-Fi and licensed radio. These technologies will tie together the mobility architecture that leverages the intelligence of the network from the wireless edge of the network into the wired core.

As carriers around the world increase cellular data capacity to serve the rapidly growing population of smartphone and tablet users, adding small cells is one of the most cost-effective ways to multiply data capacity and make better use of scarce spectrum assets. Ubiquisys’ indoor small cells expertise and its focus on intelligent software for licensed 3G and LTE spectrum, coupled with Cisco’s mobility portfolio and its Wi-Fi expertise, will enable a comprehensive small cell solution to service providers that supports the transition to next generation radio access networks.

The acquisition of Ubiquisys further reinforces Cisco’s commitment to service providers and strengthens Cisco’s mobility capabilities to continue to extend the intelligent mobile network.

Ubiquisys’ product portfolio and team will be integrated into its Small Cell Technology Group led by Partho Mishra.