Cisco buys into WiMax with the acquisition of Navini Networks for $330 million

Michelle Donegan

October 23, 2007

2 Min Read
Cisco Buys Navini for $330M

Well, you can't say we didn't warn you. As Unstrung reported last week, Cisco Systems Inc. (Nasdaq: CSCO) announced today an agreement to acquire WiMax vendor Navini Networks Inc. for $330 million in cash and assumed options. (See Cisco May Snap Up Navini and Cisco Acquires Navini.)

The acquisition of Navini instantly makes Cisco a player in the WiMax market. (See Gateway to WiMax, Cisco's WiMax Ambitions, More on Cisco's WiMax Ambitions, and Cisco Wooing WiMax Vendors?)

Unstrung has reported that Cisco has been scoping out WiMax vendors for a possible acquisition and that the shortlist included Airspan Networks Inc. (Nasdaq: AIRN), Alvarion Technologies Ltd. (Nasdaq: ALVR), Navini, and Redline Communications Inc. . (See Cisco WiMax: Why Not?)

Navini's technical strengths are its patented "smart beamforming" technology and multiple input/multiple output (MIMO) capabilities, both of which increase WiMax data transfer speeds. The companies products are based on the 802.16e mobile WiMax standard.

Also, Navini's base stations operate in many different spectrum bands, including 2.3 GHz, 2.4 GHz, 2.5-2.6 GHz, and 3.4 -3.6 GHz. The support for different frequencies means Navini's equipment can be deployed around the globe.

Navini has more than 75 customers worldwide and its equipment is already used by operators in the U.S., Europe, and Africa. (See Max Telecom Picks Navini, Navini, Airewire Partner, Digitel Resells Navini, Navini Partners in India, Horizon Trials WiMax , Navini Goes to Zambia, Scarlet Picks Navini, and EMAX Uses Navini.)

Navini's product portfolio also includes customer premises equipment, WiMax modems, and PC cards. (See Navini Intros Modems.)

Heavy Reading senior analyst Patrick Donegan says Cisco may at first encounter a steep learning curve as it enters the world of WiMax. [Ed. note: Donegan is the spouse of the Donegan writing this article. But he likely would have returned her calls anyway.]

"This marks a departure for Cisco into the outdoor radio networking environment," says Donegan. "In the initial stages, the company is likely to find it tough going against the likes of Motorola and Nortel that have been players in outdoor radio networking going back twenty years or more."

"RF in outdoor environments is a black art," says Donegan. "Navini gives them some of skill sets needed to become practitioners in that black art but they will need a lot more."

Cisco says it plans to integrate Navini into its wireless networking business unit in the Ethernet and wireless technology group. The acquisition is expected to close in the second quarter of Cisco's 2008 fiscal year.

— Michelle Donegan, European Editor, Unstrung

About the Author(s)

Michelle Donegan

Michelle Donegan is an independent technology writer who has covered the communications industry for the last 20 years on both sides of the Pond. Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications including Communications Week International, Total Telecom and, most recently, Light Reading.  

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