Will the telecommunications software firm BroadSoft Inc be acquired by Cisco?

Following the $3.7 billion acquisition of privately-held AppDynamics Inc in March, Cisco is planning for another acquisition that can affirm its presence in the field of cloud computing, Internet of Things as well as security. One among the major reason that has changed the routine is the revenue declines in the traditional business of making switches and routers. The deal is expected to help in selling unified communications software to big telecommunications firms. Also BroadSoft shares had closed at $54.90 last week, giving the company a market capitalization of $1.67 billion.

Cisco Systems rose 1.5% to 34.25 last week, just clearing a 34.20 buy point in a cup-with-handle base. Volume was slightly below normal, suggesting a lack of enthusiasm from institutional investors. Cisco could be interested in BroadSoft to secure its position in the contact center and collaboration markets, William Blair & Co. analyst Dmitry Netis wrote in a note to clients in August. BroadSoft, based in Gaithersburg, Maryland, provides cloud communication services to businesses in about 80 countries, according to its website. Founded in 1998 by former Alcatel USA vice president Michael Tessler and Celcore executive Scott Hoffpauir, the company went public in 2010. Tessler serves as chief executive officer. BroadSoft has historically sold its products to large telecommunications companies such as Verizon Communications Inc (VZ.N) and AT&T Inc T.N., which then resell the software to their business customers. Recently the company has tried to directly connect to its clients, which in fact can change its relationship with the telecommunication partners.