Cisco Plans NDS Acquisition
Cisco has announced its intention to acquire the video software and content security provider, NDS Group Ltd. According to Cisco, the acquisition will “complement and accelerate the delivery of Videoscope,” a system used by media companies and service providers for delivery of entertainment content.
“Our strategy has always been driven by customer need and on capturing market transitions,” said John Chambers, Cisco chairman and CEO. “Our acquisition of NDS fits squarely into this strategy, enabling content and service providers to deliver new video solutions that leverage the cloud and drive new monetization opportunities and service differentiation.”
Cisco expects that the NDS deal will provide the company with an enhanced reach into emerging markets, including China and India.
The announced purchase price was $5 billion, which includes assumption of debt and retention-based incentives. Cisco says that the acquisition has been approved by boards of directors of both companies, and—pending regulatory review and other closing details—it is expected to be completed during the second half of 2012.
At present, NDS has operations in five companies employing some 5,000 persons.
