Cisco Announces Intent to Acquire ExtendMedia
SAN JOSE, Calif. - August 26, 2010 - Cisco today announced its intent to acquire privately-held ExtendMedia, a leading provider of software-based Content Management Systems (CMS) that manage the entire lifecycle of video content through monetization for pay media and ad-supported business models. Based in Newton, Mass., with the majority of its employee base in Toronto, Canada, ExtendMedia will enable Cisco to help service providers deliver multi-screen offerings as the market transitions to IP video.
"As the video market transitions and consumers expect multi-screen engagement, service providers are enhancing their infrastructure to manage and deliver video to any device while providing a rich user experience," said Enrique Rodriguez, senior vice president and general manager, Cisco's Service Provider Video Technology Group. "ExtendMedia will strengthen Cisco's position in the delivery of IP video services by enabling service providers to provide a more interactive and personal experience and to optimize quality for consumer viewing devices."
ExtendMedia brings to Cisco a strong software team that understands the complexities of delivering multi-screen video over IP networks. ExtendMedia's CMS software, which will integrate with Cisco's current IP video offerings, will be a core component of Cisco's next-generation video architecture. Together, Cisco and ExtendMedia will enable service providers to deploy a next-generation, end-to-end video architecture that delivers the best consumer experience with access to any content, over any network, on any device.
Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be complete in the first half of Cisco's fiscal year 2011. Upon the close of the acquisition, the majority of the ExtendMedia team will be integrated into Cisco's Service Provider Video Technology Group. The ExtendMedia Sales and Professional Services teams will integrate into the Cisco Sales and Advanced Services organizations.
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This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco from completing the acquisition, the impact of the combined company on relevant markets and plans regarding ExtendMedia personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of ExtendMedia due to the uncertainty about the acquisition, the retention of employees of ExtendMedia and the ability of Cisco to successfully integrate ExtendMedia and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.