NEW YORK (TheStreet) -- Cisco Systems Inc. (CSCO) announced its intent to purchase Tail-f Systems, a privately held multi-vendor network service orchestration solutions provider, in order to help accelerate the company's cloud virtualization strategy of delivering software that increases value to customers' applications and services.
Cisco is expected to pay approximately $175 million in cash and retention-based incentives in exchange for all shares of Tail-f, and the deal should be completed by the end of the fiscal year 2014, the company said.
Shares of Cisco are down -0.12% to $24.50 in early trading on Monday morning.
Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."