Cisco buys cloud PBX provider BroadSoft

Cisco is set to acquire cloud private branch exchange (PBX) and unified communications (UC) solutions provider BroadSoft, in response to customer demand for fully featured voice and contact centre solutions that can be deployed across both cloud and on-premise.

The merger will see Broadsoft's cloud-based PBX integrated into Cisco's meetings, hardware and services portfolio, allowing customers to take advantage of its open UI voice and contact centre solution. This, the company said, will allow it to provide best-of-breed collaboration platforms to companies in all sectors and of all sizes.

"Together, Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment," Rowan Trollope, senior vice president and general manager of Cisco's applications business group, said. "We believe that our combined offers, from Cisco's collaboration technology for enterprises to BroadSoft's suite for small and medium businesses delivered through Service Providers will give customers more choice and flexibility."

One of Cisco's missions of late has been to replace legacy UC platforms that rely on outdated TDM lines with cloud and on-premise IP solutions. To achieve this, it has decided to make acquisitions such as BroadSoft, rather than start from scratch.

"We are excited about this transaction, which represents the culmination of a robust process undertaken by BroadSoft's Board of Directors to maximise shareholder value," said Michael Tessler, president and CEO, BroadSoft.

"As businesses continue to move toward the cloud in search of simplicity and speed, joining Cisco will allow us to deliver best-in-class collaboration tools and services. BroadSoft's hosted offerings, sold through the Service Providers and aimed at small and medium businesses, are highly complementary to Cisco's on-premises and enterprise-centric HCS offerings. Together, we can inspire teams to create, collaborate and perform in ways never before imagined."

The deal (Cisco's 200th acquisition) is expected to close early next year, with Broadsoft employees joining Cisco's Unified Communications Technology Group, which forms part of its Applications Group.