Cisco has recently revealed that it has plans to acquire NDS Group Ltd. NDS is an important player in the video industry, providing video software and content security solutions. These products and services from NDS are primarily focused towards media companies and media providers. Cisco also has a platform to deliver next-gen entertainment experiences, called Videoscape. And the company hopes the acquisition of NDS will help boast that.
NDS is a well-established company in a number of regions, including India and China. It is precisely this that makes NDS an enticing option for Cisco. Cisco plans on acquiring NDS and then expanding its scope in the provider market by accessing these regions where NDS is already well-known.
Given the sheer size as well as success of NDS, this deal is not a tiny one and naturally rakes in billions. According to the agreements, Cisco will pay a whooping $5 billion for NDS. So far, all seems to go well as the board of directors of both companies have given a green signal for the deal to go forth.
If all is settled as scheduled, Cisco will acquire NDS by the end of 2012. The important thing to note here is that Cisco’s primary focus will not be to develop NDS’ software platforms further but rather, to use different features of NDS to establish Cisco’s own Videoscape more firmly in the entertainment industry. According to the CEO of Cisco, ‘Our strategy has always been driven by customer need and on 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.’
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