Ubiquisys Acquisition Adds to Cisco (CSCO) Growth in Small-Cell Technology

April 3, 2013 12:54 PM EDT
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Price: $29.98 --0%

Rating Summary:
    32 Buy, 25 Hold, 2 Sell

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    Up: 14 | Down: 24 | New: 12
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This morning Cisco (NASDAQ: CSCO) announced its intent to acquire privately held Ubiquisys, headquartered in Swindon, U.K. for $310 million. Ubiquisys is a provider of intelligent 3G and long-term evolution (LTE) small-cell technologies.

Commenting on the news, analyst Simona Jankowski of Goldman Sachs said, "We view the proposed acquisition of Ubiquisys as complementary to Cisco's recent small cell efforts, including the January 23, 2013 acquisition of Intucell, the January 15, 2013 acquisition of BroadHop, and the November 12, 2012 acquisition of Cariden."

"As we have highlighted before, we view small cells as an insertion point for Cisco into the large $35 bn radio access network (RAN) market, where it has had no presence historically, and we estimate that close to 20% of the RAN market will be served by small cells (including WiFi) by 2016," added Jankowski.

Goldman Sachs has a Conviction Buy on Cisco with a price target of $25.00.

For an analyst ratings summary and ratings history on Cisco (NASDAQ: CSCO) click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $21.22 yesterday.

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