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Cisco acquires Richards-Zeta

January 27, 2009
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Cisco has completed its purchase of privately held Richards-Zeta Building Intelligence, Inc. The Santa Barbara, CA company is a provider of intelligent middleware technology that enables businesses to integrate building infrastructure and information technology (IT) applications over a common Internet Protocol (IP) network, resulting in improved efficiencies, greater energy savings and a reduced carbon footprint.

"Energy consumption is a global issue, and customers are increasingly demanding that energy management services are delivered over a converged IP architecture. An intelligent IP network is the platform to meet this need," said Marthin De Beer, senior vice president of Cisco's Emerging Technologies Group. "Richards-Zeta's intelligent middleware, together with the building-systems expertise of our partners and Cisco's expertise in networking technologies, will deliver complete solutions designed to maximize operational and energy efficiencies and provide cost and carbon savings for customers."

Richards-Zeta's intelligent middleware transforms building operational data into an IT-friendly format that easily integrates with existing applications. Its scalable, open platform enables the convergence of building systems onto an IP network. This integrated solution provides more effective management of energy consumption across an organization.

Richards-Zeta's technologies are expected to support innovative Cisco customer solutions such as Cisco® Connected Real Estate and Cisco EnergyWise. EnergyWise, launched today in Barcelona, Spain, is a technology for Cisco Catalyst® Switches that proactively measures, reports and reduces the energy consumption of IP devices such as phones, laptops and access points. Ultimately, Richards-Zeta's technology is expected to work together with EnergyWise and industry partner solutions to enable the management of power consumption for building and IT infrastructure.

The Richards-Zeta acquisition exemplifies Cisco's "build, buy and partner" innovation strategy to move quickly into new markets and capture key market transitions. The acquisition was accounted for in accordance with generally accepted accounting principles. Financial terms of the transaction are undisclosed.

With the close of the purchase, the Richards-Zeta team will become part of the Emerging Technologies Group that is located in Cisco's Globalisation Centre East, reporting to senior vice president Marthin De Beer. With the global growth of urbanization, the requirements for energy efficient solutions have also increased. This acquisition, the first to become part of Cisco's Globalisation Centre East based in Bangalore, India, underscores Cisco's commitment to developing replicable solutions that address the needs of both developed and developing economies. The Emerging Technologies Group is responsible for cultivating a steady stream of new businesses that are aimed at creating $1 billion worth of revenue and taking Cisco into new adjacent markets.
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