Cisco extended its push into consumer electronics
with the announcement of its planned acquisition of Pure Digital Technologies, a San Francisco-based company behind the Flip Video consumer camcorder. Under the deal, Cisco will pay approximately $590 million in stock in exchange for all shares of Pure Digital. In addition, Cisco will provide up to $15 million in retention-based equity incentives for continuing employees.
Pure Digital’s Flip Video has sold more than 2 million units. The one-button camcorder features a built-in USB plug and embedded software that allows users to easily organize and edit videos and then share them on YouTube, MySpace and other popular sharing Web sites.
“The acquisition of Pure Digital is key to Cisco’s strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking,” said Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups.
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http://www.theflip.com/
