The deal continues a wave of telecom consolidation fueled by U.S. businesses' increasing demand for data and video.
The $673 million deal combines network service providers at a time of rapid consolidation in the enterprise communications space.
Hewlett Packard Enterprise will merge its troubled IT services unit with Computer Sciences Corp. , creating a company with $26 billion in revenue.
A 17% gain in revenue from the security business helped offset weak demand for Cisco's network and routing systems in the third quarter.
