Cisco's Latest Buy: Cloud Applications Manager CliQr

Continuing a streak of software acquisitions, Cisco Systems (CSCO) said Tuesday it will buy cloud application management company CliQr Technologies for $260 million.

Cisco's head of corporate development, Rob Salvagno, said in a statement CliQr's software allows large corporations to manage a "massive number of complex and different applications" across multiple cloud computing platforms. The deal comes as Cisco aims to develop software revenue that allow for recurring sales. 

Cisco shares closed Tuesday at $26.83, down 1.2% for the year to date. The company is a holding of Action Alerts PLUS, managed by TheStreet's Jim Cramer and Research Director Jack Mohr.

"We believe [Cisco] remains undervalued and we are happy to sit back and wait until its true value is realized, while at the same time earning almost a 4% dividend. Our long-term target remains $30," they said recently.

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CEO Gaurav Manglik and Chief Technology Officer Tenry Fu are veterans of VMware  (VMW) , and founded CliQr in 2010. The company raised $20 million from Polaris Partners, Foundation Capital, Google Ventures and TransLink Capital in April 2015, bringing its total funding to $38 million.

The companies were already close. Just weeks ago, Cisco named CliQr a partner in a program of third-partner software venders that jointly market their products to corporate customers. Cisco will integrate CliQr into its data center applications portfolio.

UBS analyst Steven Milunovich wrote in a report that CliQr's software works with a broad array of systems by Cisco, VMware, Amazon (AMZN) , Microsoft (MSFT) , Alphabet's (GOOGL) Google., IBM's (IBM) SoftLayer and others. Competitors include CloudVelox and ElasticBox,  he wrote.

The acquisition CliQr fits a pattern for the San Jose, Calif., networking giant. "Most of Cisco's recent acquisitions have been software-based as the company seeks to increase its software/services revenue content higher from its current 28%," Milunovich added.

In early February, Cisco announced the $1.4 billion acquisition of Jasper Technologies. Backed by Benchmark Capital, Sequoia Capital and Temasek Inc., Jasper develops cloud software for the Internet of things, or the growing use of devices that are connected to corporate networks.

Cisco completed the $700 million purchase of video conferencing and communications software group Acano in January.

Deals last year include the purchases of cyber security companies Lancope and OpenDNS and cloud contract renewal software developer MaintenanceNet.

Cisco expects to close the purchase of CliQr in the third fiscal quarter of 2016.

-- David Marcus contributed to this report.

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