Cisco Acquires NDS Group

Cisco has recently announced its intent to acquire NDS Group Ltd. at the cost of $5 billion. This massive purchase is the latest in Cisco's line of acquisitions, and its largest since 2005.

The technologies Cisco gains from NDS will be leveraged in its home entertainment platform, Videoscape. Videoscape has also benefited from two of Cisco's previous acquisitions, BNI Video and Inlet, although neither were purchased for anywhere near the same price.

"Just like they spent big on WebEx and Tandberg to create rich collaborative solutions for enterprises, NDS can give them something similar in the home, which has long been a priority for Cisco," says Jon Arnold of UCStrategies and J Arnold & Associates. "This move is a better fit for the consumer space than Flip, as Cisco's core forte is network-based solutions rather than endpoints. NDS allows Cisco to leverage their set-top box presence to create digital content sharing capabilities that should appeal to service providers of all types, as well as give them a stronger foundation to compete against Apple TV in the battle for the digital home."

The acquisition is intended to close in the later half of 2012. Upon its completion, NDS' global operations will become a part of Cisco's Service Provider Video Technology group, and NDS Executive Chairman Abe Peled will become senior vice president and chief strategist for Cisco's Video and Collaboration Group.

For more information, visit www.cisco.com.