Cisco set to acquire Pure Digital

New Delhi: Cisco announced its intent to acquire Pure Digital Technologies, San Francisco creator of Flip Video brand. “The acquisition of Pure Digital is key to Cisco's strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking,” said Ned Hooper, Senior VP-Corporate Development and Consumer Groups, Cisco.

“Pure Digital has revolutionized the way people capture and share video with Flip Video. This acquisition will take Cisco's consumer business to the next level as the company develops new video capabilities and drives the next generation of entertainment and communication experiences,” said Hooper.

“By combining forces with Cisco, we join a company that shares our passion for video and whose global scale and tremendous technology expertise we expect will enable us to quickly expand and enrich the Flip Video experience,” Jonathan Kaplan, Chairman and CEO, Pure Digital.

Upon the close of the acquisition, the Pure Digital team will become part of Cisco's Consumer Business Group, which includes Linksys by Cisco home networking, audio and media-storage products. Under the terms of the agreement, Cisco will pay approximately $590 million in stock in exchange for all shares of Pure Digital. In addition, Cisco will provide up to $15 million in retention-based equity incentives for continuing employees. The acquisition is subject to various standard closing conditions and is expected to close in the fourth quarter of Cisco's fiscal year 2009. The acquisition will be accounted for in accordance with generally accepted accounting principles.