Cisco pays $5b for video specialist NDS

Michael Carroll
16 Mar 2012
Daily News

Cisco is beefing up its video delivery products with a $5 billion (€3.8 billion) acquisition of video software and content security firm NDS.

The firm plans to combine NDS’ software platform into its Videoscape product – a move it claims will open the door to more opportunities in the service provider market and allow it to expand the reach of those services into emerging markets including China and India, where NDS already operates.

Included in the purchase price are NDS debt and retention-based incentives. Cisco tips the deal to clear competition authorities in the back-half of the year, at which point all 5,000 NDS staff in offices in the UK, Israel, France, India and China will transfer to the US firm.

Cisco chairman and chief John Chambers says the purchase fits with his firm’s strategy of “capturing market transitions.” The extended capabilities will enable “content and service providers to deliver new video solutions that leverage the cloud,” he adds.

Related content