Cisco has announced they’ll be acquiring Starent Networks in a deal worth approximately $2.9 billion. The deal is expected to close during the first half of 2010; the two companies will continue to operate as separate entities until then.

When the deal is completed – which could be prolonged by regulatory reviews and customary closing conditions – Starent Networks will become the new Mobile Internet Technology Group at Cisco, led by Starent Networks’ President and Chief Executive Officer Ashraf Dahod.

Starent Networks is a company that enables mobile operators to deliver rich multimedia on mobiles; we’re talking stuff like video, mobile TV, photos, and games. Starent’s technology helps operators to scale their infrastructure and deliver content on 2.5G, 3G and 4G radio networks.

“Combining Cisco’s strength in video and IP with Starent Networks’ leading mobile infrastructure solutions creates a compelling portfolio of products that provides an integrated architecture to offer rich, quality multimedia experiences to mobile subscribers on 3G and 4G networks,” said Starent CEO Ashraf Dahod.

Today’s mobiles aren’t just about making and receiving phone calls; smartphones are on the rise, and users of these devices expect a rich multimedia experience. With its second big acquisition this month (they also acquired Tandberg), Cisco is using the recession to extend its range of services and position itself to the mobile future ahead of us.

Image courtesy of iStockphoto, UltraONEs

Tags: acquisition, cisco, Starent Networks

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Cisco Eyes Mobile Internet With $2.9 Billion Starent Acquisition