The world's largest maker of network equipment, Cisco Systems is to buy mobile broadband equipment-maker Starent Networks for $US2.9 billion.
The BBC reports Cisco is banking on the growing popularity of smartphones, which need fast internet access.
The deal is expected to be completed in the first half of 2010.
It is Cisco's second major acquisition this month. On 1 October, it agreed to buy the Norwegian video conferencing company Tandberg for $US3 billion.