--Cisco agrees to buy telecom gear maker Ubiquisys for $310M

--Deal includes cash and retention incentives

--Cisco expanding mobility portfolio through series of deals

(Adds background on small cells, Ubiquisys funding, details throughout.)

Cisco Systems Inc. (CSCO) agreed to buy cellular-network-gear provider Ubiquisys for $310 million, the latest in a string of acquisitions made by the technology heavyweight to increase its mobility offerings.

Ubiquisys specializes in small-cell radio stations, which improve cellular service by sending and receiving data within a smaller area than outdoor towers.

"Cisco is 'doubling down' on its small-cell business to accelerate strong momentum and growth in the mobility market," said Kelly Ahuja, mobility business group general manager.

The purchase of Ubiquisys, a privately held company based in Swindon, U.K., represents the latest overseas deal by the San Jose, Calif., network-equipment supplier. Cisco Systems Chief Executive John Chambers has long criticized the nation's high tax rate on profits made overseas, saying it forces the company to keep and spend much of its sizable cash pile abroad, instead of investing in the U.S.

So far this year, Cisco has pledged to spend hundreds of millions of dollars on investments in Austria, Israel and Russia.

Ubiquisys was formed in 2005 and grew with backing from 5CCG/Sallfort Privatbank AG, Accel Partners, Advent Venture Partners, Atlas Venture and Yasuda, among other investment firms. The Ubiquisys deal, expected to close by August, includes cash upfront and retention-based incentives.

The company's transmitters, sometimes called picocells or femtocells, cut carriers' costs by shifting traffic from congested towers to more targeted locations inside a office, home or public space, which also boosts the service's reliability.

Cisco said it will integrate Ubiquisys employees into its service provider mobility group.

Additions to Cisco's mobile carrier business have picked up of late. In January, the company closed a deal for BroadHop Inc., a Denver company that lets service providers better separate data traffic, allowing them to offer customers premium service packages with higher speeds. That same month, Cisco offered $475 million for Intucell Ltd., an Israel software developer that helps mobile-network operators manage traffic more efficiently.

Cisco shares traded down two cents at $21.20 early Wednesday. The stock has risen 8% so far this year.

--Ben Rooney contributed to this article.

Write to Drew FitzGerald at andrew.fitzgerald@dowjones.com

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04-03-13 1014ET