Cisco Systems (NASDAQ:CSCO) To Acquire Intucell in a $475 Million Accord

The San Jose, California-based Cisco Systems, Inc (NASDAQ:CSCO) decided to acquire Intucell Ltd, based in Ra’anana, Israel, for around $475 million, adding technology that assists wireless carriers manage their networks.

Cisco, the world’s biggest manufacturer of networking equipment, reported in a statement on Wednesday that it will pay cash and retention incentives to purchase the closely held corporation. The agreement is projected to be done in Cisco’s fiscal Q3, which finishes in April.

The purchase is part of an attempt to receive more revenue from wireless carriers, which are booting their capital spending to handle additional traffic. Shares of Cisco plunged 1.2% to settle at $20.62 in New York and stock moved up 8.7% current year.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Ericsson (ADR) (NASDAQ:ERIC) rose +1.06% to settle at $10.53, Alcatel Lucent SA (ADR) (NYSE:ALU) moved up +3.55% to end at $1.75 while Juniper Networks, Inc. (NYSE:JNPR) plunged -1.02% to finish at $21.28 on Wednesday.

Cisco Systems, Inc. (NASDAQ:CSCO) last session’s volume of 37.14 million shares was surprisingly lower than its average volume of 38.75 million shares. The stock after opening at $20.89 hit high price of $20.89 and then closed at $20.62 by scoring -1.20%.

The liquidity measure in recent quarter results of the company was recorded 3.38 as current ratio and on the other side the debt to equity ratio was 0.31 and long-term debt to equity ratio remained at 0.31. The Company had total cash of $45.00 million at hand and a book value per share as $9.92 in the most recent quarter.

The stock’s price volatility was 1.40% for a week and 1.45% for a month as well as price volatility’s Average True Range for 14 days was 0.31 and its beta remained at 1.24.

CSCO generated revenue of $46.68 billion in the previous twelve months and earned $8.36 billion. The Company showed a positive 17.90% in the net profit margin as well as in its operating margin which remained at 22.47%. Company’s annual sales growth for the past five years was 5.69%.

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