Cisco completes NDS acquisition
Cisco has confirmed that it has completed the acquisition of digital TV technology specialist NDS Group. The announcement follows the July 24 clearance of the deal by the European Commission, which found that the merged entity would continue to face competition from a number of strong competitors and that customers, namely pay-TV providers, would continue to have alternative suppliers in all markets concerned.
On March 15, 2012, Cisco announced a definitive agreement to acquire NDS, suggesting that NDS’s software platform, customer segments and services model complemented Cisco’s networked video offerings and would accelerate the delivery of Videoscape, Cisco’s next-generation video entertainment delivery platform. Through the NDS acquisition, Cisco has also expanded its global video footprint in new and emerging markets, further broadening its service provider presence and deepening customer relationships.
NDS’s employees join Cisco’s Service Provider Video Technology Group (SPVTG), led by Senior Vice President and General Manager Jesper Andersen. With the close of this transaction, Dr Abe Peled, formerly NDS chairman and CEO, becomes senior vice president and chief strategist for Cisco’s Video and Collaboration Group, of which SPVTG is a part. Dr Peled reports to Marthin De Beer, senior vice president of Cisco’s Video and Collaboration Group.
Under the terms of the agreement, Cisco paid approximately $5 billion, including the repayment of debt and retention-based incentives, to acquire all of the business and operations of NDS. The net impact to Cisco is expected to be accretive to EPS in the first full year on a non-GAAP basis.