Cisco Acquires London-Based IMImobile In $721m Deal

Networking services and hardware company Cisco Systems Inc (NASDAQ: CSCO) is buying London-based cloud communications software startup IMImobile PLC. Through the acquisition, Cisco is attempting to enhance its Customer Experience as a Service (CXAAS).

IMImobile shares on the London Stock Exchange jumped 48% on Monday, its highest rally till now.

What Happened: According to Bloomberg, the acquisition deal is valued above $721 million, including debt. IMImobile investors will receive cash compensation of 595 pence for each share held. The deal is expected to close by the first quarter of the next year.

Cisco’s Senior VP Jeetu Patel said, “A great customer relationship is built on consistently enjoyable interactions where every touchpoint on every channel is an opportunity for businesses to deliver rich, engaging and intuitive experiences.”

Why Does It Matter: In collaboration with Cisco’s Webex Contact Center, the company plans to deploy IMImobile customer-facing software to connect enterprises and business entities with their clients using omnichannel capabilities like voice, chat, or social media messaging.

Using personalized interaction features, the AI-powered programmable solution is expected to drive 10x times improved customer experience.

According to Crunchbase, IMImobile has acquired 11 entities to date. In July 2019, IMImobile acquired Florida-based mobile marketing company 3Cinteractive for an undisclosed amount. 3Cinteractive offers technology services and expertise to increase engagement.

Price Action: CSCO dipped 0.07% to close at $44.35 on Monday.

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