Tech company Cisco announced on Wednesday that it is acquiring Jasper Technologies for a staggering $1.4 billion. Jasper Technologies is a startup company that focuses mainly on the development of Internet of Things technologies and the cloud platform.

This is Cisco's biggest company acquisition since 2013 after it acquired security company Sourcefire for a record $2.7 billion. Cisco had established its brand as a major player in computer networking. Now that the attention and focus of tech companies are slowly shifting towards the cloud platform, Cisco is also making headways in order to establish its brand on the growing market.

Like Us on Facebook

The current rise in the cloud computing platform is starting to threaten Cisco's brand in the networking industry. By acquiring start-ups like Jasper Technologies, Cisco is investing on the future of the Internet of Things market.

In an interview with Reuters, Cisco vice president Rob Salvagno said, "We've been keeping an eye on this market and what we noticed was that Jasper represented a unique asset. We believe they are the largest Internet of Things service platform of scale today."

According to Tech Crunch, Jasper Technologies has a wide range of customers that includes international brands like GM, Ford, Heineken and Boston Scientific. Salvagno claims that the company has over 3500 enterprise customers and 27 service providers scattered in over 100 international markets.

Over the years, Cisco has been steadily shifting its business focus towards high-end routers and switches. The company has also acquired several start-up companies over the past few years. On the other hand, the company is also investing on new platforms such as cloud-based tools for data centers and data analytics software.

Market analysts said that the deal will between Cisco and Jasper Technologies will be finalized within the third quarter of the year. As part of the deal, Jasper Technologies chief executive officer Jahangir Mohammed will stay with Cisco and will be the head of the new Internet of Things Software Business unit.

Prior to the acquisition, Jasper Technologies is planning an initial public offering in order to boost its market value. Some of the company's known investors are Benchmark Capital, Singapore's Temasek and Sequoia Capital.