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Cisco Drops $5B On Video-Tech Firm NDS

Computer networking giant Cisco is planning to buy digital video technology company NDS Group for about $5 billion, including debt. NDS specializes in software that delivers video and interactive entertainment to TV set-top boxes in a secure fashion. According to Cisco, NDS will accelerate the delivery of its Videoscape entertainment platform, and help it grow in emerging markets such as China and India -- where NDS already does business -- the Associated Press reports.

The move is part of a broader effort by Cisco to narrow its focus through strategic acquisitions, and cost cutting. In April 2010, the company bought up Norwegian teleconferencing company Tandberg. NDS, based in the United Kingdom, is jointly owned by News Corp. and private equity firm Permira, according to AP. “Its software helps cable and satellite TV companies deliver content to subscribers’ digital video recorders and other devices.”

Per the acquisition, “Cisco is acquiring NDS’ sites in Britain, Israel, France, India and China and its 5,000 employees,” the AP reports. NDS owed about $1 billion in debt at the end of 2011, which is being included in the total acquisition price. Boards of both companies still have approved the deal, which is expected to close in the second half of the year.

 


Read the whole story at The Washington Post »

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