Now that the new tax law is freeing up big tech firms to bring back tens of billions of dollars stored overseas, a spate of new tech acquisitions may be on the horizon. And one of the most aggressive buyers is likely to be Cisco Systems.
At a recent meeting with reseller partners, CEO Chuck Robbins hinted that Cisco would use some of the $68 billion it holds overseas for acquisitions, said a person who was present. Since Mr. Robbins became CEO in mid-2015, his top priority has been to expand in subscription-based software to offset declines in Cisco’s traditional hardware businesses. Logical areas for him to target now include cybersecurity, where Cisco has already put down roots, and data center software, where it is relatively less established.