Cisco is set to push itself into consumer electronic market as it buys Pure Digital. The acquisition is set to be worth $590 million, a deal which is to be an all stock one. The acquisition will close by end of fourth quarter as Cisco would pay $15 million as equity incentives. Pure Digital is the maker of the widely known Flip Video cameras. In a press release, Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups, stated:
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. Pure Digital has revolutionized the way people capture and share video with Flip Video. This acquisition will take Cisco’s consumer business to the next level as the company develops new video capabilities and drives the next generation of entertainment and communication experiences.
