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Cisco Systems, a manufacturer of Internet infrastructure equipment, has announced a $6.9 billion deal to acquire Scientific-Atlanta, a cable set-top box manufacturer.
John Chambers, Cisco’s president and CEO, said that the deal was stimulated by the fact that video is emerging as the key strategic application in service providers’ triple play bundle of consumer entertainment, communication and online services. The combined companies make it possible for Cisco to offer an end-to-end solution to address this trend.
The boards of both companies have signed off on the deal. It is still subject to the approval of government antitrust regulators.
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