Cisco has agreed to acquire Springpath, a developer of hyperconvergence software, in a deal valued at $320 million. Cisco first backed Springpath in 2015, leading a $52 million funding at a valuation of $298 million. Overall, Springpath has raised $95 in venture financing from the likes of New Enterprise Associates, Redpoint Ventures and Sequoia since its 2012 founding.
In 2016, the year after Springpath emerged from stealth, the two companies collaborated on the development of Cisco's hyperconverged infrastructure, HyperFlex. The acquisition of Springpath will expand Cisco's data-center portfolio and move the networking giant toward providing more software-centric services. That should come as welcome news just a week after Cisco posted a decline in revenue for its seventh consecutive quarter. Over 40% of Cisco's revenue comes from selling data-center switching and routing hardware.