Cisco Systems has agreed to buy PostPath Inc. in a $215 million deal, highlighting the networking giant's bid to expand its business-applications portfolio, reports MarketWatch.

An analyst with JMP Securities said the move could lead to heightened competition between Cisco and Microsoft Corp. Mountain View, Calif.-based PostPath makes Linux-based email, calendaring and applications for online collaboration. The firm will become part of Cisco's (CSCO:

Cisco Systems, Inc WebEx Connect platform, which lets companies hold meetings and other activities via the Web. Analyst Samuel Wilson of JMP Securities said the merger could mean that Cisco will now slug it out with Microsoft in email servers as well, noting that PostPath had been competing