Cisco Systems to buy NDS Group for $5B

By Cromwell Schubarth
Staff Writer |
Dallas Business Journal or 408-299-1823.    

Cisco Systems Inc.on Thursday said it has agreed to acquire London-based video delivery software company NDS Group Ltd. in a deal valued at about $5 billion.

The price includes about $1 billion in debt, as well as the value of retention-based incentives.


NDS is owned by News Corp and private-equity firm Permira.


San Jose-based Cisco (NASDAQ:CSCO) said the acquisition will "complement and accelerate the delivery" of Videoscape, its platform for media companies. Cisco has a large data center operation and campus in Richardson.


It said it will also broaden Cisco's opportunities in the service provider market, expanding its reach into emerging markets, such as China and India, where NDS is established.


The deal is expected to close in the second half of the year.


Upon completion of the transaction, NDS's 5,000 employees will join the Cisco Service Provider Video Technology Group (SPVTG) led by Senior Vice President and General Manager Jesper Andersen.


NDS Executive Chairman Abe Peled will be named senior vice president and chief strategist for Cisco's Video & Collaboration Group, of which SPVTG is a part. Peled will report directly to Marthin De Beer, senior vice president, Cisco Video and Collaboration Group.


Cisco CEO John Chambers said in a prepared statement, "Our strategy has always been driven by customer need and on capturing market transitions. 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."

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