**Editor's Note: Please click here for the biggest M&A in Q3 2012 in the service-provider and BSS/OSS spaces.**
Cisco today announced its intent to acquire privately held Cariden Technologies Inc., a Sunnyvale, Calif.-based supplier of network planning, design and traffic management solutions for telecommunications service providers. With global service providers converging their IP and optical networks to address exploding Internet and mobile traffic growth and complex traffic patterns, Cisco is looking to its acquisition of Cariden to allow providers to enhance the visibility, programmability and efficiency of their converged networks, while improving service velocity.
Cariden's capacity planning and management tools for IP/MPLS which have been deployed by many leading fixed and mobile network operators, will be integrated into Cisco's Service Provider Networking Group to enable multilayer modeling and optimization of optical transport and IP/MPLS networks. Cisco expects Cariden's products and technology will advance Cisco's nLight technology for IP and optical convergence. The acquisition also supports the company's Open Network Environment (ONE) strategy by providing sophisticated WAN orchestration capabilities that will allow service providers to improve both the programmability of their networks and the utilization of existing network assets across the IP and optical transport layers.
Upon the close of the acquisition, Cariden employees will be integrated into Cisco's Service Provider Networking Group, reporting to Shailesh Shukla, vice president and general manager of the company's Software and Applications Group. Under the terms of the agreement, Cisco will pay approximately $141 million in cash and retention-based incentives in exchange for all shares of Cariden. The acquisition is subject to various standard closing conditions and is expected to be completed in the second quarter of Cisco's fiscal year 2013.