Cisco to acquire Leaba Semiconductor for $320 million as buying spree continuesMar. 3, 2016
Cisco continued its buying spree today as it announced its intention to acquire Israeli chip designer Leaba Semiconductor for $320 million.
Cisco sees this acquisition as a way to bolster its hardware catalog with highly advanced chip technology.
“By combining Leaba’s semiconductor expertise with the Cisco engineering team, we will accelerate our plans for Cisco’s next generation product portfolio and bring new capabilities to the market faster,” Rob Salvagno, head of Cisco’s M&A and venture investing team wrote in a blog post announcing the purchase.
When the deal closes, the Leaba team will report to Core Hardware Group, led by Cisco senior vice president, Ravi Cherukuri, according to the blog post.
The company actually doesn’t even have a shipping product yet, R Ray Wang, founder at Constellation Research told TechCrunch. “They haven’t even finished their prototype. This is an acqui-hire for next generation semi-conductor [technology]. Think networking at the chip level,” he said.