Cisco (NASDAQ: CSCO) today announced its intent to acquire privately held Intucell. Headquartered in Ra'anana, Israel, Intucell provides advanced self-optimizing network (SON) software, which enables mobile carriers to plan, configure, manage, optimize and heal cellular networks automatically, according to real-time changing network demands. The acquisition of Intucell enhances Cisco's commitment to global service providers by adding a critical network intelligence layer to manage and optimize spectrum, coverage and capacity, and ultimately the quality of the mobile experience.

The proliferation of connected mobile devices, faster network speeds, and growing demand for high-bandwidth applications and services are driving greater network traffic and complexity. As mobile service providers continue to face increased end-user demand, the need to optimize network bandwidth, usage and services is increasing. Intucell's SON software platform addresses these challenges by examining the network, identifying issues in real time, and intelligently adapting the network to meet demand.

With the evolution of LTE 4G networks, mobile operators are increasingly looking for a more cost effective and efficient way to keep up with demand for bandwidth and reduce complexity. Intucell enhances Cisco's ability to deliver next-generation solutions with a SON software platform that supports multi-application, multi-vendor and multi-technology capabilities and enables service providers to manage operational costs and make better use of infrastructure investments.

"The mobile network of the future must be able to scale intelligently to address growing and often unpredictable traffic patterns, while also enabling carriers to generate incremental revenue streams," said Kelly Ahuja, senior vice president and general manager, Cisco Service Provider Mobility Group. "Through the addition of Intucell's industry-leading SON technology, Cisco's service provider mobility portfolio provides operators with unparalleled network intelligence and the unique ability to not only accommodate exploding network traffic, but to profit from it."

The acquisition of Intucell exemplifies Cisco's innovation framework and supports Cisco's five foundational priorities to lead the market in networking across all customer segments. The acquisition is well-aligned to Cisco's goals of developing and delivering innovative network and software technologies.

Upon the close of the acquisition, Intucell employees will be integrated into Cisco's Service Provider Mobility Group, reporting to Shailesh Shukla, vice president and general manager, Software and Applications Group. Under the terms of the agreement, Cisco will pay approximately $475 million in cash and retention-based incentives to acquire the entire business and operations of Intucell. The acquisition is expected to close in the third quarter of Cisco's fiscal year 2013, subject to customary closing conditions, including applicable regulatory approvals.