Cisco Systems (CSCO) - Get Report announced on Monday that it had entered into a definitive agreement to acquire BroadSoft, Inc. (BSFT) , a publicly-held communication software and service provider.

Cisco will pay $55 per share, in cash, in exchange for each share of the Maryland-based BroadSoft, or a total purchase price of approximately $1.9 billion net of cash, assuming fully diluted shares including conversion of debt.

"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, "said Rowan Trollope, senior vice president and general manager of Cisco's Applications Business Group.

"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," said Michael Tessler, president, and CEO, BroadSoft. 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."

More of What's Trending on TheStreet: