Menu
Cisco flips for video camera maker

Cisco flips for video camera maker

Cisco Systems said Thursday it plans to buy Pure Digital Technologies Inc., the maker of the popular Flip Video handheld camera, for US$590 million in stock.

Cisco's payment would be in exchange for all of the shares of Pure Digital. Cisco said it would pay an additional $15 million in retention-based incentives for continuing Pure Digital employees. The acquisition is expected to be final in Cisco's fourth quarter.

Cisco has been making a push into video-related technologies for years, including faster networking technologies to transport rich media and video as well as videoconferencing data. The acquisition of Pure Digital is a key element in Cisco's plans to expand into what it calls the "media-enabled home," said Ned Hooper, Cisco's senior vice president of consumer groups.

The lightweight Flip Video has sold more than 2 million units, allowing a user to quickly capture, edit and share video, especially through Internet-based sites such as YouTube, Pure Digital officials said.

As part of the acquisition, Pure Digital CEO Jonathan Kaplan would become general manager of the consumer business group, which would combine the Pure Digital work force with Cisco employees working on Linksys by Cisco home networking, audio and media-storage products.

Josh Martin, senior analyst at the Yankee Group, said Cisco's purchase of Pure Digital falls in line with previous acquisitions Cisco has made of companies such as Linksys in 2003, Scientific Atlanta in 2005 and WebEx Communications in 2007.

"At first glance, the acquisitions of these disparate companies appear to be a mishmash of differently aligned visions," Martin said. "But deeper evaluation indicates [Cisco's] laser focus on improving the value of the network as a means for communication. Pure Digital may seem to just be a HD camcorder company but it allows Cisco to place improved value on 'the network' while providing the company entry into consumer telepresence."

Telepresence is usually used to describe higher quality videoconferencing with high definition video and audio resolution.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cisco

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Show Comments