Telecom equipment-maker Cisco Systems has entered into a deal to buy wireless internet infrastructure company Starent Networks for $2.9 billion.

Telecom equipment-maker Cisco Systems has entered into a deal to buy wireless internet infrastructure company Starent Networks for $2.9 billion. Cisco will pay $35 per share for each share of the nine year-old company, equal to about a 21 per cent premium over Starent’s closing stock price of $29.03 on October 12, 2009. Starent makes equipment for wireless providers such as AT&T and Verizon to send large amounts of data to cell phones, smartphones and computers with mobile broadband modems. The acquisition helps Cisco benefit from the increasing demand for phones such as the iPhone and BlackBerry, which drive data traffic.