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.
"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.