Cisco will buy Britain's Axiom Systems, along with its Axioss software and an unspecified number of employees, from Comptel.
If the deal goes through, Cisco will gain additional network and service management capabilities to sell to service providers.
The Axioss software is designed to make life easier for service providers to offer video, data, mobility and cloud services to end users, largely by automating ordering.
The acquisition will cost $31 million (£18.8 million) in cash and is expected to go through in the third quarter of 2011.
“As more users, connected mobile internet devices and bandwidth intensive applications drive the explosive growth in IP-based networks, service providers continue to invest in their infrastructure to support customers' needs," said Jesper Andersen, senior vice president and general manager for the Network Management Technology Group (NMTG) at Cisco.
"With the acquisition of Axioss software and talent, we will help enable service providers to generate greater profits using a single management architecture to drive quick monetisation and optimisation of their Cisco network investments.”
Jordi Ferrer, managing director for the UK service provider and media division at Cisco, noted the investment the networking giant was making into the UK.
“Through the acquisition of Axioss software and talent we will be investing in a unique set of technology and skills in the UK that will be a valuable addition to Cisco's network management portfolio," Ferrer said.
"Cisco will deliver network management technology and services that will help service providers significantly increase the speed and lower the costs of delivering a wide range of voice, video and data services to their customers.”
The move forms part of Cisco’s realigned strategy following chief executive (CEO) John Chambers call for a move back to what the company was best at: serving markets with quality networking equipment and services.
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