Cisco Systems, Inc.(NASDAQ:CSCO)’s pursuit for acquisitions whereasdealing with its worst stretch of sales expansion is making buyout candidates out of Citrix Systems, Inc. (NASDAQ:CTXS), NetApp Inc. (NASDAQ:NTAP) and Rackspace Hosting, Inc. (NYSE:RAX).
Chief Executive Officer John Chambers statedDecember 7 that Cisco, with its stock value lower 42% since November 2007, has gone too long without a “major” purchase and remained unsuccessful to invest enough in firms it bought. According to data compiled by Bloomberg,four months previously, he purchased NDS Group for almost $5 billion, Cisco’s third-biggest agreement.[article_detail_ad_1]
As the network-equipment industry develops, Chambers is competing with two straight years of sales increasingbelow 8% and analysts forecasting three more years lower than that level, an exceptional streak, data compiled by Bloomberg illustrate.
Citrix and its technology for conveying services over the Internet may request to Cisco, Thrivent Financial for Lutherans stated. Data-storage firmNetApp is one more candidate, in relation to Thrivent, while JMP Securities LLC states Rackspace’s website-hosting business may prove attractive.
Erik Suppiger, a San Francisco-headquartered analyst at JMP Securities, commented in a telephone interview that they know that in order to develop, they have got to increase. It’s about Cisco attempting to identify market opportunities and going in some diverse directions. That’s what he think is the urgency.
NetApp (NTAP), which would provide Cisco data-storage hardware and software to amplify Cisco’s present offerings in servers and networking gear, is one more candidate, Karazerisstated. Previous month, its enterprise value dropped to 5.7 times earnings before interest, taxes, depreciation and amortization, the economy level since 2008. The valuation for the Sunnyvale, California- headquarteredfirm is currently 8.1 times.
WhereasNetApp’s revenue increased 22% in fiscal 2012, surges will be between 1% and 8.7%yearly through 2017, analysts’ forecasts collected by Bloomberg show.