Cisco acquires software company BroadSoft

Cisco has acquired BroadSoft for $1.9 billion. With the acquisition, Cisco wants to reduce its dependence on routers and switches and focus more on the telecommunications software market.

Cisco and BroadSoft announced the acquisition after rumors surfaced earlier Monday that an acquisition was imminent. Cisco pays $1.9 billion for the American software company. Through the acquisition, Cisco aims to offer a broader range of communication products and services. Faced with declining demand for network equipment, the company is trying to focus on communications, security and Internet-of-things.

BroadSoft provides software that enables companies to offer various communication services, such as calling, chatting and video conferencing. The software also enables company employees to collaborate by sharing files and dividing tasks.

Cisco hopes to complete the acquisition this year. The BroadSoft employees will be part of Cisco’s Unified Communications Technology Group. It is Cisco’s second major acquisition this year. In March, the company acquired AppDynamics for $3.7 billion.