SAN JOSE, California (BNO NEWS) — Cisco on Thursday announced its intent to acquire video software and content security solutions company NDS Group Ltd. for approximately $ 5 billion.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, Cisco said it would pay approximately $ 5 billion, including the assumption of debt and retention-based incentives, to acquire all of the business and operations of NDS, which is headquartered in the English town of Staines.
Reports indicate that the total amount of debt and incentives is approximately $ 1 billion.
Cisco, based in San Jose, California, is expecting the acquisition to broaden its opportunities in the service provider market, expanding its reach into emerging markets, such as China and India, where NDS has an established customer footprint.
“Our strategy has always been driven by customer need and on capturing market transitions,” Cisco Chairman and CEO John Chambers said. “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.”
The acquisition is expected to close during the second half of the current year, subject to customary closing conditions, including regulatory review in the United States and elsewhere.