Cisco to buy Jasper for $1.4bn
February 10, 2016
Cisco plans to acquire Jasper Technologies, a privately held company based in California that delivers a cloud-based IoT service platform to help enterprises and service providers launch, manage and monetise IoT services on a global scale. Cisco will pay $1.4bn in cash and assumed equity awards, plus additional retention based incentives.
Jasper claims to be the industry’s leading IoT service platform in terms of number of enterprises and service providers; many of the world’s largest enterprises and service providers are using the Jasper platform to scale their IoT services business globally. With Jasper, companies can connect any device – from cars to jet engines to implanted pacemakers – over the cellular networks of the top global service providers, and then manage connectivity of IoT services through Jasper’s software as a service (SaaS) platform.
IoT brings with it many complexities, such as connecting and securing millions of devices and collecting and analysing data. Jasper simplifies this and helps customers accelerate the shift to the IoT. The Jasper IoT service platform automates the management of IoT services across connected devices and enables companies to create new business models that transform their products into connected services and generate new sources of ongoing revenue.
Jasper develops and provides a SaaS platform with a predictable, recurring revenue IoT business that manages and drives a wide range of connected devices and services for more than 3500 enterprises worldwide, working with 27 service provider groups globally.
The proposed acquisition will allow Cisco to offer a complete IoT service that is interoperable across devices and works with IoT service providers, application developers and an ecosystem of partners. Cisco plans to continue to build upon the Jasper IoT service platform and add new IoT services such as enterprise Wifi, security for connected devices, and advanced analytics to better manage device usage.
“I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognise the value of the internet of things,” said Chuck Robbins, Cisco chief executive officer. “Together, we can enable service providers, enterprises and the broader ecosystem to connect, automate, manage and analyse billions of connected things, across any network, creating new revenue streams and opportunities.”
Jasper CEO Jahangir Mohammed will run the new IoT software business unit under Rowan Trollope, Cisco senior vice president and general manager of its IoT and collaboration technology group.
“IoT has become a business imperative across the globe,” said Mohammed. “Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale. By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success.”
The acquisition is expected to close in the third quarter of fiscal year 2016, subject to customary closing conditions.
“I’m incredibly excited about this news and believe it will help accelerate the digitisation journey of our enterprise customers,” said Cisco’s Rob Salvagno in a blog post. “Jasper understands that enterprises making connected products need a simple, scalable and interoperable IoT service platform that can support the billions of connected devices estimated to be connected to the network in the next five years. Together, Cisco and Jasper will deliver exactly that to our customers.”