Update: Cisco announced that the acquisition of Starent Networks has been completed.

Original Article: Cisco announced today that it is acquiring Starent Networks for $35 per share in cash, bringing the total to about $2.9 billion. Starent Networks is a supplier of IP-based mobile infrastructure solutions.

"Cisco and Starent Networks share a common vision and bring complementary technologies designed to accelerate the transition to the Mobile Internet, where the network is the platform for Service Providers to launch, deliver and monetize the next generation of mobile multimedia applications and services," said Pankaj Patel, Senior Vice President/General Manager of Cisco's Service Provider Business.

"We are very pleased that Starent Networks will be joining the Cisco team, and we believe their products and engineering talent will greatly benefit our Service Provider customers as they build out their Mobile Internet offerings," said John Chambers, Chairman and CEO of Cisco.

"Combining Cisco's strength in Video and IP with Starent Networks' leading mobile infrastructure solutions, creates a compelling portfolio of products that provides an integrated architecture to offer rich, quality multimedia experiences to mobile subscribers on 3G and 4G networks," said Starent Networks President and CEO Ashraf Dahod.

The acquisition has been approved by the boards of directors of both companies. It is expected to close during the first half of 2010. The close date is subject to regulatory reviews.

Until the deal closes, the two companies will continue to operate separately. After it closes, Starent Networks will become the new Mobile Internet Technology Group, led by Dahod, within Cisco's Service Provider Business , led by Patel.