9:45 AM New York – Cisco Systems agrees to acquire mobile data communication infrastructure provider Starent Networks Corp. Cisco agreed to pay 20.6% to premium to yesterday’s closing price of $35 a share or $2.9 billion. Starent is the second major acquisition for Cisco after the purchase of Norway based Tandberg AS.

Cisco Systems agreed to acquire mobile communication infrastructure provider Starent Networks Corp for $2.9 billion or $35 a share in cash.

Cisco (CSCO) will pay 20.6% premium to Starent closing price of $29 a share at the close yesterday.

Cisco in a press release noted that global mobile data traffic is expected to double every year through 2013.

Cisco expects the acquisition to be dilutive to non-GAAP earnings in 2010 and 2011 and accretive to non-GAPP earnings in 2012.

Starent (STAR) solutions are used in the mobile data network management from any 2.5G, 3G, and 4G radio network standards to a core network managed by the carrier.

Starent revenues have jumped to $540.77 million in 2008 from $397.22 million in 2005 and earnings have increased to $41.7 million from $45.88 million. Earnings per share increased from $2.22 a share to $2.97 a share.

This is the second major acquisition for Cisco in the current year after the purchase of Norway based video conferencing equipment maker Tandberg AS for $3 billion.