Cisco Systems Inc. has come to an agreement with cloud-networking company Meraki for $1.2 billion in cash, Reuters reports
. The deal is expected to close in the second quarter of Cisco's 2013 fiscal year pending regulatory approval.
Cisco, known for its networking equipment solutions, now aims to develop its cloud and networking strategies with the addition of Meraki, founded in 2006 by members of MIT's Laboratory for Computer Science. Funded by Sequoia Capital and Google Inc., Meraki provides Wi-Fi technology, switching, security, and cloud-based mobile device management with a specialty serving mid-size businesses.
According to the Reuters report, the deal will enable Cisco to offer alternatives to traditional Wi-Fi deployment models from smaller competitors such as Aruba Networks and Ruckus Wireless.