The present study focuses on the acquisition strategies of Cisco Systems, a comprehensible representative of high-technology firms. This investigation has depicted a dynamic picture of acquisition behavior when the geographic location of targets varies. Analysis has revealed that high-technology firms are more likely to acquire co-located start-ups. Our findings suggest that high-technology firms are more likely to acquire targets who have received an earlier equity investment and whose technologies have been standardized. We have also found partial evidence that supports the argument that high-technology firms pursue cluster-based acquisitions. Analysis suggests that access to patents does not matter for start-up companies located in industry clusters while their counterparts outside these clusters need patents to become acquisition targets. © 2013 Wiley Periodicals, Inc.