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Cisco Systems Inc. (CSCO - Analyst Report) recently announced that it has agreed to buy cellular-network-gear provider, Ubiquisys Ltd. for $310 million.

Swindon, U.K.-based Ubiquisys Ltd. is a privately-held mobile communications company. It designs and develops communications devices and solutions for mobile operators and consumers. It specializes in small-cell radio transmitters called picocells or femtocells that improve cellular services.

Upon the completion of the deal, Ubiquisys will become a part of Cisco's Small Cell Technology Group, augmenting Cisco’s offering to service providers.Cisco is seeing strong momentum in the mobile market. Cisco’s product portfolio already offers small-scale equipment handling for 3G cellular traffic and Wi-Fi.

After the acquisition, Cisco will benefit from Ubiquisys software, expertise and knowledge that should boost Cisco’s mobile-carrier business in the future.

Cisco Systems is a leading provider of IP-based networking and other products. As a part of its acquisition strategy, Cisco bought 11 companies in 2012. In January, Cisco spent $475 million to purchase Intucell, a company that develops advanced self-optimizing network (SON) software to enable mobile carriers to plan, configure, manage and optimize cellular networks automatically.

Further, it acquired cloud services management business SolveDirect for an undisclosed amount. SolveDirect offers cloud-based solutions for enterprises and service providers, which help to streamline data and workflows across unified networks.

We believe that these acquisitions will broaden Cisco’s customer base and network offerings, providing the company with a significant competitive edge.

Cisco’s revenues in the second quarter of fiscal 2013 increased 5.2% year over year and 1.7% sequentially to $12.1 billion. Products (78.0% of total revenue) were up 3.3% year over year to $9.4 billion. Services (22.0% of total revenue) jumped 12.5% year over year to $2.7 billion.

Cisco carries a Zacks Rank #2 (Buy). Other companies in the sector that also look attractive include Hewlett Packard Company (HPQ - Analyst Report), Silicom Ltd. (SILC) and Juniper Networks (JNPR - Analyst Report). While Hewlett Packard and Silicom carry a Zacks Rank #1 (Strong Buy), Juniper carries a Zacks Rank #2 (Buy).

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