Cisco Acquires WebEx

May 31, 2007: While speculation about a possible purchase of Avaya bubbles away, Cisco has announced that it has acquired WebEx communications and its network-based collaboration gear.

Design with SMBs in mind, WebEx’s services include technology that enables companies to perform asynchronously or real-time data conferencing over the internet, as well as share documents and workspaces.

As part of the US$3.2 billion deal deal, Cisco purchased 46,339,278 shares of WebEx’s common stock - approximately 90.1% of outstanding shares, making it a wholly owned Cisco subsidiary.

Originally announced on March 15, the deal further extends Cisco’s Unified Communications platform and further movies the company into the software and services sector.

So far WebEx has used a subscription-based, software as a service (SaaS) model for its business, Cisco says it intends to keep this in place. WebEx also holds a suite of online office programs to compliment its collaboration suite. This could put Cisco into direct competition with Microsoft and Google in the emerging field. However, according to IDG News Cisco’s Chief Development Officer Charles Giancarlo says the company has no plans to compete with either.

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