NEW YORK, USA: Cisco Systems Inc said it would buy wireless networking gear maker Starent Networks for $2.9 billion as it sees strong growth in demand for high-speed wireless service.

The top U.S. network equipment maker, Cisco said on Tuesday that it would pay $35 for each share of Starent Networks in a deal the companies expect to close during the first half of calendar 2010.

Starent shares had closed at $29.03 on Monday.

Cisco said the acquisition would probably hurt earnings excluding items in its fiscal years 2010 and 2011, but add to profit in fiscal 2012.