Cisco buys Flip Video maker

Mar 19, 2009
The logo of US networking giant Cisco Systems stands in front of the company's headquarters in San Jose, California. Cisco Systems Inc. announced on Thursday it was buying Pure Digital Technologies, maker of the popular Flip Video camcorder, in a deal worth more than 600 million dollars.

US networking giant Cisco Systems Inc. announced on Thursday it was buying Pure Digital Technologies, maker of the popular Flip Video camcorder, in a deal worth more than 600 million dollars.

Cisco said it was paying 590 million dollars in stock for all shares in privately held Pure Digital, and will provide up to 15 million dollars in retention-based incentives for employees of the San Francisco-based company.

Cisco's foray into consumer electronics is the second move into a new sector by the leading manufacturer of switches and routers this week.

Monday, the San Jose, California-based Cisco threw down the gauntlet to erstwhile partners Hewlett-Packard and IBM and announced it would begin making computer servers.

"Pure Digital has revolutionized the way people capture and share video with ," Ned Hooper, Cisco's senior vice president of corporate development and , said in a statement.

"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," Hooper said.

"This acquisition will take Cisco's consumer business to the next level as the company develops new and drives the next generation of entertainment and communication experiences," he said.

Pure Digital has sold more than two million of the handheld Flip Video , which are simple and easy to use and allow for quick uploading of video to the Internet or sharing by email.

"Flip Video puts the power to instantly capture, edit and share video into the hands of everyday consumers," said Jonathan Kaplan, chairman and chief executive of Pure Digital.

"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."

Cisco said the deal is expected to close in the fourth quarter of its 2009 fiscal year.

(c) 2009 AFP

Explore further: Facebook CEO wants more students to explore tech

add to favorites email to friend print save as pdf

Related Stories

Cisco to acquire Scientific Atlanta

Nov 18, 2005

Cisco Systems is acquiring video-equipment supplier Scientific Atlanta in a stock transaction worth just under $7 billion. The companies said Friday the deal creates an "end-to-end triple play solution" for carrier networks.

Cisco, Intel invest in gaming technology

Mar 09, 2006

Extent Technologies announced Wednesday it has won additional investments from Intel and Cisco to develop its portfolio of digital distribution technologies.

Recommended for you

Alibaba prices IPO at $68 per share

9 hours ago

Alibaba, the Chinese e-commerce powerhouse named after a fabled, poor woodsman who discovers a thieves' den full of treasures, is ready to strike it rich on the New York Stock Exchange.

Alibaba's plan: Today, China. Tomorrow, the world.

16 hours ago

Amazon and eBay should watch their backs. As Chinese e-commerce powerhouse Alibaba readies what could be the biggest initial public offering ever on the New York Stock Exchange, it is quietly hinting at plans ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

kirel
not rated yet Mar 19, 2009
That's unfortunate. Often the more things a company tries to do, the more they suck at each one.

Guess I'll have to start watching closely the quality of Cisco equipment in the upcoming future.