Cisco to Acquire Pure Networks

By Naomi Graychase

July 23, 2008

Cisco Systems announced today that it would acquire Pure Networks, the privately held provider of the popular Network Magic home networking management software and tools.

Cisco Systems announced today that it will acquire Pure Networks, the privately held provider of the popular Network Magic home networking management software and tools.

Seattle-based Pure Networks fits into the overall Cisco vision of creating a fully integrated home networking management solution that “will also serve as the foundation for the development of new applications, tools, and capabilities for consumers to use in an increasingly ‘connected life’ at home, at work, and on the go.”

"This particular transaction enables Cisco to expand its leadership position in the 'Connected Life' space by owning the core technology behind an upcoming paradigm shift," says Trevor Bratton, Linksys PR Manager, North America. "This shift being one of the network transitioning from existing as what could be called Home Networking 1.0, where home networks are largely designed to share a broadband connection between PCs, to a Home Networking 2.0 where home networks become more media-enabled and experience a proliferation of networked devices (Network Storage, Home Audio, HDTVs) and services.

"As these new technologies become part an increasingly important part of the network, the importance of making them easy to use and manage skyrockets. Additionally, when you look at the culture at Pure Networks, it fits well with Cisco using all of the key factors that are in place for evaluating an acquisition--culture, shared vision, short-tern win, long-term win, and leadership."

Gartner VP, Distinguished Analyst, Ken Delaney, says, “I think it’s a good acquisition. I’ve used Network Magic for quite some time. It’s a good networking product that overcomes some of the shortcomings that Microsoft has in its networking tools, in both XP and Vista. It has a great user interface and I think more and more consumers are really becoming networking managers, whether they like it or not. They have multiple machines, intruders, and lots of pieces wired and wireless equipment. It’s a good product and necessary if Cisco wants to continue to lead in this area.”

Pure Networks currently partners with Cisco to provide the software infrastructure and tools used to create the Linksys Easy Link Advisor (LELA), which helps users to set up, organize, manage, secure, and use their home networks.

The acquisition, worth $120 million, is expected to be completed in 1Q09.

Naomi Graychase is Managing Editor at Wi-FiPlanet.com



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