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Continuing a string of small but strategic acquisitions, Cisco Systems (Quote) will pay $12.5 million in cash for Nemo Systems.
Nemo will allow Cisco to add memory space and enhance the performance of its core switching platform and service modules. For enterprise customers, that means it will be easier to scale their systems and reduce overall costs.
The purchase is expected to close by Oct. 29 pending regulatory approval. When it does, Nemo will become part of Cisco's Data Center, Switching and Security Technology Group (DSSTG), reporting to vice president and general manager Tom Edsall.
Nemo is privately held and based in Los Altos, Calif.
Cisco's purchase fits with its acquisition strategy of picking up companies that will bring new technologies and intellectual property, as well as speed time-to-market for its products.
Cisco has been buying smaller companies with this approach than it did during the Internet boom of the late 1990s. For example, the San Jose, Calif.-based company has been snapping up firms in the storage sector over the last year, as well.
It has also bought Voice over IP (define) specialist and home networking firm in recent months.
A Cisco spokeswoman was not immediately available for comment.
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