Cisco Taps U.S. Cash for ScanSafe Buy

Considering that ScanSafe is based in both London and San Francisco, I wondered whether Cisco would use U.S. or overseas cash for the $183 million deal.

A spokesman from Cisco’s investor-relations department informs me that, because ScanSafe is domiciled in the U.S, Cisco will tap its American cash to execute the deal.

Before announcing the acquisitions of Tandberg and Starent earlier this month, Cisco reportedly possessed a cash mountain of $35 billion — $29 billion overseas and $6 billion in the USA. If all three deals go through, Cisco will have about $32 billion in overseas cash and more than $2.9 billion in domestic cash, according to my fingers-and-toes calculations.

That gives Cisco plenty of flexibility to pursue additional ScanSafe-sized, all-cash acquisitions in the USA, but not much wiggle room for another Starent- or Tandberg-sized cash-only deal in its home market. If it has one of those in mind domestically, stock likely will be part of the equation.


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