|Телеком||ТВ и медиа||Облака||ПО||Кадры|
|ИТ в образовании||ИТ в медицине||Big Data||E-commerce||Спутниковая связь|
|Все новости||World News|
Cisco buys video streaming firm NDS for $5 billion
|16 марта 2012|
Cisco Systems announced Thursday (March 15) that it would be buying set-top box software maker the NDS Group for $5 billion in cash.NDS, founded in Israel in 1988 and now headquartered in London, focuses on seamless content streaming between different devices, as well as content protection security to combat piracy.
The firm already boasts media giants like British Sky Broadcasting and DirecTV
as clients, as well as Sky Italia, and analysts believe the acquisition will
boost Cisco’s Videoscape streaming platform and boost software revenue for the
firm as its core networks business decreases.
This is not the first time NDS has been acquired, having been snapped up in
2009 by private equity firm Permira and Rupert Murdoch’s media giant News Corp.
for $3.6 billion. Today, NDS counts 5,000 employees and has offices in five
countries, including extensive operations in Israel.
With NDS software, users get what the firm describes as a “unified
entertainment experience across several devices,” meaning that one can flit
between watching the same program on one’s TV, tablet or smartphone, with the
software adapting the programming to the various formats automatically. The
software architecture itself goes by the name of Snowflake.
Cisco CEO John T. Chambers said the acquisition was prompted by his firm’s
strategy to hone in on customer needs and 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,” he said.
Indeed, adding a more lucrative software and services model to Cisco’s existing
low-margin set-top box business would do much to increase profitability,
The services themselves could also be white labeled and sold to global cable
companies looking to offer value to consumers owning a range of digital
Cisco’s $5 billion includes the assumption of about $1 billion of NDS debt and
is the biggest purchase the networking firm has made since it acquired video
conferencing company Tandberg for $3 billion in 2009.
The deal is likely to close by the end of 2012, after regulatory review, and NDS’s CEO Abe Peled will apparently transition to become a senior vice president and chief strategist for Cisco’s video and collaboration group.