Cisco Announces Intent to Acquire JouleX
Acquisition Enhances Cisco's Software-as-a-Service Offerings with Energy Management for Enterprise Networks and Data Center Infrastructures
SAN JOSE, Calif. – May 29, 2013 – Cisco today announced its intent to acquire privately held JouleX, a leader in enterprise IT energy management for network-attached and data center assets. JouleX, with headquarters in Atlanta, GA, complements Cisco’s existing services portfolio by using the capabilities of the network to gain visibility into and control energy usage across global IT environments.
As the need for improved energy management increases, global companies are faced with a new set of energy-related challenges. Increasingly enterprises are focusing on network and IT energy efficiency and are seeking solutions to control energy consumption across their campuses and data centers. JouleX provides software for networked devices for enterprise and data center energy management, analytics, policy governance and compliance.
JouleX’s energy management solution, together with Cisco EnergyWise™, will provide customers with a simple way to measure, monitor and manage energy usage for network and IT systems across the enterprise, without the use of device-side agents, hardware meters or network configurations. JouleX’s software helps to reduce energy costs by monitoring, analyzing and managing energy usage of all network-connected devices and systems through a set of policies derived through analytics tailored for an enterprise’s needs.
“JouleX’s technology will strengthen Cisco Services’ Smart Offerings and complements our evolving services strategy. It extends our ‘Internet of Things’ capabilities and is a good alignment to Cisco EnergyWise,” said Faiyaz Shahpurwala, senior vice president, Industry Solutions. “With network-enabled devices increasing exponentially, our partners and customers are asking for this solution today to operationalize their energy management capabilities in the network and reduce cost. JouleX’s cloud-enabled, agent-less architecture will allow our partners and customers to quickly deploy this solution at scale in addressing their IT energy management needs.”
The acquisition of JouleX exemplifies Cisco’s innovation framework and supports Cisco’s five foundational priorities by enhancing our software and service offering across all customer segments and advancing our business and technology architecture. The JouleX acquisition is aligned to Cisco’s goals of developing and delivering innovative energy management solutions that streamline data and work flow across a unified network.
JouleX was founded in Munich and currently has research and development operations in Kassel, Germany. Upon completion of the acquisition, JouleX employees will be integrated into the Connected Energy Solutions team within Cisco’s Industry Solutions Group, reporting to David Goddard, vice president and general manager. Under the terms of the agreement, Cisco will pay approximately $107 million in cash and retention-based incentives in exchange for all shares of JouleX. The acquisition of JouleX is expected to be complete in the fourth quarter of fiscal year 2013, subject to customary closing conditions.
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This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding JouleX personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of JouleX due to the uncertainty about the acquisition, the retention of employees of JouleX and the ability of Cisco to successfully integrate JouleX and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.