Cisco to Acquire Jabber

Cisco announced its intent to acquire privately held Jabber, Inc., a provider of presence and messaging software. Based in Denver, Jabber will work with Cisco to enhance the existing presence and messaging functions of Cisco's Collaboration portfolio.

The acquisition will enable Cisco to embed presence and messaging services "in the network" and provide rich aggregation capabilities to users through both on-premise and on-demand solutions, across multiple platforms including Cisco WebEx® Connect and Cisco Unified Communications.

"Enterprise organizations want an extensible presence and messaging platform that can integrate with business process applications and easily adapt to their changing needs," said Doug Dennerline, Cisco senior vice president, Collaboration Software Group. "With the acquisition of Jabber, we will be able to extend the reach of our current instant messaging service and expand the capabilities of our collaboration platform. Our intention is to be the interoperability benchmark in the collaboration space."

Jabber provides a carrier-grade, best-in-class presence and messaging platform. Jabber's technology leverages open standards to provide a highly scalable architecture that supports the aggregation of presence information across different devices, users and applications. The technology also enables collaboration across many different presence systems such as Microsoft Office Communications Server, IBM Sametime, AOL AIM, Google and Yahoo!. Jabber's platform leads the market in system robustness, scalability, extensibility and global distribution.

The Jabber acquisition exemplifies Cisco's "build, buy and partner" innovation strategy to move quickly into new markets and capture key market transitions. In addition to internal software innovations, Cisco actively employs investments in, and acquisitions of, other companies to support its software strategy; recent purchases include industry leaders WebEx, IronPort, Securent and PostPath.

The transaction will be accounted for in accordance with generally accepted accounting principles. Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be complete in Cisco's first half of fiscal year 2009. Upon completion of the acquisition, Jabber employees will become part of the Cisco Collaboration Software Group (CSG). CSG is part of the recently established Software Group, consisting of Cisco's major software businesses; including the IOS network operating system, network and service management, Unified Communications solutions, policy management, and SaaS offerings.