LONDON (ShareCast) - (Sharecast News) - Cisco Systems has agreed to buy IMImobile for £543m in cash to improve the US company's customer experience service.
The US technology conglomerate's offer values each IMImobile share at 595p - 51.6% more than the software company's share price before Cisco's first approach to the company and 41.8% more than Friday's closing share price.

Cisco said it had irrevocable undertakings from investors holding 54.5% of IMImobile's shares to back the deal. IMImobile shares rose 47% to 593.10p at 11:44 GMT.

IMImobile provides software and services to businesses to connect with customers through interactive channels including social, messaging and voice. Cisco said IMImobile's products would add to its customer experience offer to business clients by keeping them in touch with their customers.

John Allwood, IMImobile's chairman, said: "The offer from Cisco recognises the significant achievements of all of the team at IMImobile. The Independent Directors of IMImobile believe it is in the best interests of all stakeholders in IMImobile, enabling them to realise significant and immediate value, whilst enabling the long term success of the business."

Cisco said it intended to keep IMImobile's headquarters in London and that it did not plan any material changes to the UK company's strategy, management or employees. The US company said jobs at corporate functions could be cut once IMImobile's separate listing ends but that it did not expect to make material headcount reductions including in research and development.

Chief Executive Jay Patel, finance chief Michael Jefferies and chief technical officer Shyamprasad Bhat will stay on as Cisco employees. Patel will be paid $3m in cash to retain his services over three years.

Patel said: "We are excited to join Cisco and become part of one of the world's leading technology companies as they seek to enable great customer experiences. We believe there will be a world of dynamic, always-on connections between global businesses and their customers and the combination of our respective technologies will enable to us make every interaction matter more for our clients."

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