Cisco announced Wednesday its intent to acquire Jasper Technologies for $1.4 billion, in a firm, future-minded commitment to the Internet of Things (IoT).
Jasper Technologies, a privately held company based in Silicon Valley, helps companies connect devices with a cloud-based IoT service platform. Jasper connects devices via cellular networks, and then manages the connectivity of devices via a software-as-a-Service (SaaS) solution.
Jasper is essentially the glue of IoT, and places Cisco in a unique position in the burgeoning Internet of Things, or connected device, market. Theoretically, any device that can be connected can be connected with Jasper’s SaaS platform.
On a call for investors and analysts Wednesday, Cisco asserted its commitment and investment to IoT and called Jasper Technologies the essential ingredient. It transforms a static product to a connected device, Cisco says.
The Internet of Things market is expected to grow substantially in the next decade, and Cisco’s acquisition may be a smart move to snag a chunk of the market. The company also recently acquired ParStream, a real-time database for analyzing the large amounts of data necessary for IoT, in October.
Research and Markets expects the global IoT market to grow at a compound annual growth rate of 31.25% over the next three years, while Grand View Research predicts the IoT market to reach $1.88 trillion by 2022 at a growth rate of 15.2%.
Cisco says it will pay the price tag in cash and assumed equity awards, plus additional retention incentives for Jasper employees who join Cisco. Jasper also brings 3,500 customers to the table, including McDonald's and General Electric’s jet engine manufacturing division.
The deal is expected to close by the end of the quarter.