Cisco has announced its intention to acquire cloud software firm MaintenanceNet in a deal worth $139m in cash and incentives.
Cisco expects the deal to be completed in the first quarter of its 2016 fiscal year, providing access to MaintenanceNet's cloud data analytics automation software.
MaintenanceNet's software provides a business intelligence platform that taps into customer data to gain information that can be used to boost revenue generated from after-market sales and services.
The software uses data analytics to identify customers with service contracts scheduled or overdue for renewal, or finds products used by customers that are not currently covered by an after-market service.
Debbie Dunnam, senior vice president of global customer success at Cisco, revealed the company's acquisition plans in a Cisco blog post, saying that it builds on a long-term partnership with MaintenanceNet.
"Since 2009, Cisco and MaintenanceNet have worked together to offer Cisco distribution and reseller partners a simple and automated way to improve service renewals and identify uncovered product opportunities," she said.
"This helps Cisco partners capture high-volume and low-dollar sales opportunities that may risk being overlooked. This streamlined process enables services contract opportunities to be pursued quickly and efficiently."
Dunnam added that the acquisition is a "critical component" of Cisco's strategy for its customer success division, and will allow the unit to simplify and inject digital technology into its processes.
It would appear that the acquisition is designed to improve how Cisco conducts its own business operations and channel partnerships, rather than just adding another software service to its bulky product portfolio.
Dunnam gave little indication as to how the acquisition will affect the structure of MaintenanceNet.
V3 contacted MaintenanceNet for its view on the acquisition, but the firm said that it is not at liberty to comment at this time. Cisco has yet to respond to our requests for further information.
Cisco is a prolific purchaser of smaller companies and an investor in startups, both of which it uses to build out its product and service offerings.
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