Cisco is set to purchase NDS Group, a provider of video content security systems for £3.2bn in a deal it said will allow it to deliver new video solutions that leverage the cloud.
The agreement to buy NDS is one of Cisco’s most significant purchases since it acquired video-conferencing company Tandberg in 2009. It is seen as a bid to build up its software and services arm, which it said it plans to place more emphasis on alongside its traditional networking hardware business.
The deal will bolster its Videoscape content delivery platform and allow it to expand into the lucrative emerging markets of India and China.
With the NDS purchase, Cisco would be able to use NDS technology in the platform to create pay TV products for service providers that allow subscribers to view, search and navigate digital content on any device. NDS products include set-top boxes software, electronic programme guides and content protection systems.
Cisco said the purchase would boost and supplement the delivery of its cloud-based television offerings.
"Our strategy has always been driven by customer need and on capturing market transitions," said Cisco CEO John Chambers, in a statement. "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 monetisation opportunities and service differentiation."
The boards of directors of both companies have approved the acquisition. On closing of the deal, NDS’s worldwide operations, including sites in the UK, Israel, France, India and China, and 5,000 employees will join the Cisco Service Provider Video Technology Group, 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 and Collaboration Group, of which SPVTG is a part.
