- Gentlemen, start your drones: Judge’s ruling opens door for commercial use
- Soldier who hid, bragged about not saluting flag to be punished — in secret
- ‘Maverick’ of the seas: ‘Top Gun’ school for U.S. ship officers to launch
- Putin declares Sochi Paralympics open amid Ukrainian protest
- ‘In Jesus name, we pray’ sparks ire at Ohio council meeting
- Navy’s first laser weapon ready for prime time; drone killer to deploy this summer
- Billionaire backer: Rick Santorum ‘needs to be heard’ in 2016
- Obamacare fallout: 49 percent pessimistic; 45 percent ‘scared’
- DHS accused of holding U.S. citizen at airport, using emails to pry into her sex life
- Seattle socialist: Minimum-wage discussion skewed by ‘right-wing’ GAO analysis
Cisco to buy video tech company NDS for about $4B
The networking gear maker has been working to turn its business around. It missed the early stages of the economic recovery and lost out to competitors when orders began to rebound.
Cisco said Thursday that the NDS acquisition will speed up the delivery of its Videoscape entertainment platform and help it grow in emerging markets such as China and India, where NDS already does business. Videoscape is a service that lets customers watch video on mobile gadgets and laptops along with their TVs.
Cisco is putting a $5 billion price tag on the planned acquisition. That number includes debt. NDS carried about $1 billion in debt at the end of 2011, the latest available figure from its regulatory filings.
San Jose, Calif.-based Cisco has narrowed its focus in recent years by culling divisions and cutting costs through layoffs. It shuttered its consumer-oriented Flip video camera business last year, but video offerings for businesses have remained a big part of its focus. It acquired Scientific-Atlanta, a maker of TV set-top boxes, in 2006 for $7.1 billion and online conference provider WebEx a year later for $3 billion.
Brian Marshall, an analyst with ISI Group, said the deal makes sense for Cisco as it focuses on video offerings for service providers. NDS, which competes with Cisco, counts pay-TV operators such as DirecTV, Vodafone, Cox and BSkyB among its customers.
NDS, based in the United Kingdom, is jointly owned by News Corp. and private equity firm Permira. Its software helps cable and satellite TV companies deliver content to subscribers’ digital video recorders, tablets, smart phones and other devices. It had filed documents as part of a planned initial public offering before agreeing to the deal with Cisco.
Cisco is acquiring NDS‘ sites in Britain, Israel, France, India and China and is absorbing its 5,000 employees. The boards of both companies have approved the deal, which is expected to close in the second half of this year.
So, the company needs to find the next high-growth area, and that would be video, he added.
Cisco’s stock fell 28 cents, or 1.4 percent, to close Thursday at $19.91 after trading as high as $20.20 earlier in the session. That was near its 52-week high of $20.49 reached about a month ago.
TWT Video Picks
Taxpayers must pay the freight for over-budget train projects
- CPAC 2014: Rand Paul urges conservatives to fight for liberty
- Putin has transformed Russian army into a lean, mean fighting machine
- Soldier who hid to avoid saluting the flag to be punished in secret; Army won't release details
- EDITORIAL: Connecticut revolts against gun controls that could criminalize 300,000
- Kim Jong-un calls for execution of 33 Christians
- Bill Clinton poses for photo with Bunny Ranch prostitutes
- Bill Clinton cashes in on struggling nonprofit hospital
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- EDITORIAL: Harry Reid's corrupt Senate house of cards
- Russias Putin nominated for Nobel Peace Prize
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again