Cisco has bought network memory company Nemo Systems for $12.5 million.

The networking giant paid all cash for the private company which produces "cutting-edge" technology that lets customers scale network systems and line card bandwidth while reducing the cost of networking systems, according to Cisco. It will be incorporated into Cisco products, the company said.

Cisco expects the deal to close by late October, at which point Nemo would become part of Cisco's Data Center, Switching and Security Technology Group, reporting to general manager Tom Edsall.