The acquisition is expected to close in the fourth quarter of Cisco's fiscal year 2009. In addition to exchanging US$590 million in stock for all Pure Digital shares, Cisco will provide up to US$15 million in retention-based equity incentives for continuing employees. Pure Digital Chairman and CEO Jonathan Kaplan will become general manager of the combined organization, reporting to Ned Hooper, senior vice president of Cisco's corporate development and consumer groups. Upon the close of the acquisition, Pure Digital will become part of Cisco's Consumer Business Group, which includes Linksys by Cisco home networking, audio and media-storage products. The products come equipped with software that allows users to organize and edit videos, and then share them on YouTube, MySpace and other popular sharing Web sites. Pure Digital's Flip Video has sold more than 2 million units by being "simple, accessible and fun," Cisco says. As more consumers upload video content to the web, it will also drive demand for Cisco's traditional products-switches and routers."
"Pure Digital will add to Cisco's arsenal of products aimed at driving increased network bandwidth, similar to Cisco's video conferencing products. "We view Pure Digital as broadly in-line with Cisco's consumer strategy," said UBS analyst Nikos Theodosopoulos in a bulletin on the deal.
0 kommentar(er)
