NEW YORK (TheStreet) -- Cisco Systems Inc. (CSCO) announced today its intent to buy the privately-held company Metacloud, a California-based business founded in 2010, in order to accelerate Cisco's strategy to build the world's largest global Intercloud.
"Cisco's acquisition of Metacloud's remote managed OpenStack Private Cloud-as-a-Service platform will play an increasingly important role in accelerating Cisco customers' journey to the cloud, enabling enterprises to match the as-a-Service operational benefits of public cloud with the security and control provided by private cloud," the company said.
"Metacloud also will allow service providers to combine their public cloud deployments with remotely managed OpenStack private clouds, and to deliver unique Intercloud offerings to their customers," Cisco continued.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Cisco Systems did not provide financial terms of the acquisition, but expects the deal to close in the first quarter of fiscal 2015.
Shares of Cisco are higher by 0.20% to $25.27.
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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share 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."