Cisco To Buy Cloud-Native Mobile Core Developer Working Group Two For $150M

In its ninth announced acquisition of 2023, the tech giant revealed plans to buy Working Group Two to “turbo charge” the recently announced Cisco Mobility Services platform.

Cisco Systems on Thursday announced its intent to acquire cloud native mobile core developer Working Group Two (WG2) for $150 million.

Cisco, no stranger to its pending acquiree, partnered with WG2’s parent company and telecommunications giant Telenor Group for its launch in 2017. The technology will help “turbo charge” Cisco’s Mobility Services platform, which was announced in February, according to Masum Mir, senior vice president and general manager for Cisco Networking’s Provider Mobility business.

Norway-based Telenor Group said that via the terms of the deal, Cisco will acquire all shares in the company for an enterprise value of $150 million.

The deal marks Cisco’s ninth announced acquisition of 2023 as the company continues its shopping spree to round out its cybersecurity and mobility portfolios.

[Related: Cisco Scoops Up Internet Monitoring Startup Code BGP]

WG2 got its start as a development project within Norway-based telecommunications company Telenor Group before it was spun out with Telenor as a cornerstone investor in 2017 alongside digital infrastructure investment firm Digital Alpha. WG2 offers a cloud-based core network platform for mobile operators.

WG2 in the last six years has grown to more than 90 employees with a global customer base in Europe, North America, and Asia, according to the company.

Cisco’s Mobility Services platform, meanwhile, provides a full-stack cloud-native converged core network and distributed edge support. WG2’s technology will complement the platform, said Mir in a blog post on the planned acquisition.

“Built for simplicity, innovation, and efficiency, WG2’s platform uses the web-scale playbook and operating models, which makes it a natural fit with our Mobility Services Platform. WG2’s technology and team beautifully align with the same approach: simplifying the Mobile network architecture to deliver a radically innovative mobile service. And with WG2 and the Cisco Mobility Services Platform, we’ll be able to boost our service edge deployment and API first strategy for application development partners, enterprise customers and service provider partners,” Mir said in his blog post.

WG2 will join Mir’s Provider Mobility organization within Cisco Networking. The acquisition is expected to close during the first quarter of Cisco’s 2024 fiscal year, which ends in October.

Cisco’s shopping spree so far this year has included cybersecurity and cloud-focused purchases. Among those deals was its acquisition of Code BGP, a privately held Border Gateway Protocol monitoring company that the tech giant announced earlier this month. Cisco also in May announced its Armorblox purchase, a company that has pioneered the use of large language models (LLMs) and natural language understanding in cybersecurity. In February, Cisco unveiled plans to buy cloud network security startup Valtix and then in March, Cisco said it would acquire Lightspin, a cloud security software company.

The tech giant is expected to announce its full-year 2023 earnings on August 16.