Cisco To Acquire MaintenanceNet for $139 Million
Cisco Systems (CSCO) has announced it will purchase cloud-based software platform vendor MaintenanceNet for $139 million in cash and retention based incentives.
Cisco Systems (CSCO) has announced it will purchase cloud-based software platform vendor MaintenanceNet for $139 million in cash and retention based incentives. The acquisition is expected to allow Cisco to strengthen its ability to automate service renewals and increase recurring revenue opportunities with its distributors and partners.
MaintenanceNet uses its cloud software platform to manage and scale attach and renewals of recurring customer contracts, according to the announcement. Cisco said it plans to utilize the platform to speed up its services contract renewal opportunities, thus eliminating much of the manual work surrounding contract renewals with customers.
Both Cisco and MaintenanceNet have worked together since 2009, with Cisco using the platform to help boost distributor and partner revenue potential by developing automated quoting, notifications and online ordering for service renewals.
MaintenanceNet will join Cisco’s Global Customer Success organization, which focuses on improving customer engagement and delivering a more streamlined end-to-end experience to customers, according to the announcement.
“Just as MaintenanceNet’s business was built with and through partners, this acquisition demonstrates Cisco’s focus on serving the partner go-to-market strategy and its significant role in our customers’ success,” said Debbie Dunnam, senior vice president of Global Customer Success, in a blog post. “This acquisition is a critical component of our strategy for GCS to simplify and digitize our business processes.”
The deal is expected to close during the first quarter of Cisco’s fiscal year 2016, although a specific date was not announced.
The purchase comes on the heels of Cisco’s $635 million purchase of OpenDNS, a cloud-based cybersecurity software and services provider. The deal, which is expected to close in October, is the first acquistion made under the leadership of Chuck Robbins and is expected to help Cisco gain ground in the cybersecurity market, according to Seeking Alpha.