Cisco CEO: Trump Changes Won't Affect Our M&A Strategy
BARCELONA -- Mobile World Congress 2017 -- Cisco CEO Chuck Robbins says changes to the US corporate tax code -- or additional measures to encourage companies to bring overseas money back to American shores -- are unlikely to affect how the networking giant approaches its own acquisition strategy.
US service providers have recently been suggesting that a lower corporate tax rate, which is expected to drop from 25% to 15%, and a lighter regulatory touch could encourage more buying and spending. Others say the administration could help stimulate more M&A in the US. (See Trump Promises Tech Execs 'Easier' Trade Conditions and T-Mobile CFO on Trump: Expect More Consolidation & More Competition.)
At a Cisco press roundtable Tuesday, Light Reading asked Robbins if he anticipated that Cisco could be shaking up its M&A strategy, if the administration lowers the corporate tax rate and makes it easier to bring money back onshore.
"I don't think that it'll meaningfully change our strategy even when that does occur," Robbins said. Cisco, he noted, has continued with its typical fast-paced M&A schedule and undertaken 19 acquisitions -- including the $1.4 billion Jasper buy -- since he started as CEO at the end of July 2015. (See Cisco Buys IoT Cloud Provider Jasper for $1.4B.)
Moody's Investors Service says that Cisco held $62 billion in cash reverse offshore at the end of 2016.
— Dan Jones, Mobile Editor, Light Reading