September 22, 2021

CERTIFIED TRUSTED BY ZERO Cisco is set to acquire HyperX CloudX and CloudX Enterprise in a deal valued at $9.5 billion, according to a person familiar with the deal.

The acquisition is expected to close by the end of the year.

The person spoke on condition of anonymity because the transaction is not yet public.

HyperX is a cloud-based, cloud-computing company that is best known for offering services like web hosting and data storage.

The deal would be Cisco’s first for a cloud service provider, though it’s the second-largest cloud service firm behind Amazon Web Services.

The company is valued at about $3 billion.

Hyper X has been operating in several countries, including the United States and Europe.

The transaction is expected close in the first quarter.

In addition to the purchase, Cisco is also acquiring another cloud provider, CloudMax, for about $2 billion.

Cisco’s cloud-focused networking company has struggled in recent years, and its shares have fallen nearly 70% in 2017, after climbing as high as $1,738 in late 2018.

The cloud market has been a mixed bag for Cisco, with the company posting revenue growth of just 2% in 2018, and the company’s stock down more than 70% this year, to $30.43 in late August.

Cisco also has a cloud division focused on enterprise applications, and that has seen mixed results, especially in 2017.

Its top-tier offerings, like its Cisco IOS products, have been plagued by a host of security vulnerabilities, and customers have complained about slow adoption of its software.

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