Feeds

Cisco rewards friends with $50m investment

Nuova spins-in

Designing a Defense for Mobile Applications

Cisco has lined up yet another "spin-in" by shelling out a $50m investment for start-up Nuova Systems.

Nuova is comprised of a number of former Cisco executives. Many of them came from Cisco's first ever acquisition Crescendo, while others were involved in Cisco's acquisition of Fibre Channel switch maker Andiamo.

The Andiamo link is key here as Cisco is repeating a past strategy of investing in a Cisco bred start-up with the right to buy. Cisco has given Nuova $50m in play money and has the option of handing the wee company another $42m investment. The start-up will now be 80 per cent owned by Cisco with Nuova's lucky employees holding the other 20 per cent, since the company was self-funded.

Details are thin on exactly what Nuova is working on, although our sources say the company has a virtualization server in mind.

"Innovation has always been at the core of Cisco's engineering and development efforts, and the company's unique approach to innovation continues to be through internal development, partnerships and acquisitions and investments," Cisco said. "Cisco's relationship with Nuova Systems is an example of how the company is able to use its investment capabilities to expand its opportunities within a key emerging area."

Should Cisco decide to buy the firm outright, the employees stand to make a bundle. After all, Cisco put in close to an $80 investment for Andiamo and then bought the firm for more than $700m, keeping its friends happy.

Cisco's noted that it could pay anywhere between $10m and $578m for Nuova, if Cisco decided to exercise its option to buy the company. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.