Cisco Completes Acquisition of NDS
Expanded Video Portfolio to Accelerate Cisco Videoscape, Enabling Service Providers and Media Companies to Provide Next Generation Entertainment Experiences
SAN JOSE, Calif., July 31, 2012 – Cisco (NASDAQ: CSCO) today announced it has completed the acquisition of NDS Group Ltd., a leading provider of video software and content security solutions that enable service providers and media companies to securely deliver and monetize new video experiences.
On March 15, 2012, Cisco announced a definitive agreement to acquire NDS. NDS' software platform, customer segments and services model complement Cisco's networked video offerings and accelerate the delivery of Videoscape™, Cisco's comprehensive platform that enables service providers and mediacompanies to deliver next-generation video entertainment experiences. 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' 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.
Jesper Andersen, senior vice president and general manager, Service Provider Video Technology Group
"The addition of NDS' leading software solutions and systems integration expertise play a key role in accelerating the Cisco Videoscape platform aimed at delivering better-than-being-there entertainment experiences. Through our combined expertise, we look forward to providing the next-generation TV experience that is more immersive, engaging and social, while helping to create new revenue opportunities for our service provider customers."
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This 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. These statements include, among others, statements regarding Cisco's ability as a result of the acquisition to transform how service providers and media companies provide next generation entertainment experiences, acceleration of the delivery of Cisco's Videoscape platform, broadening opportunities in the service provider market and deepening customer relationships, expansion of Cisco's reach into new and emerging markets, the expected benefits of the acquisition to Cisco and its customers, the expected financial performance of Cisco (including projections) following completion of the acquisition, and plans regarding NDS 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 NDS due to the uncertainty about the acquisition, the retention of employees of NDS and the ability of Cisco to successfully integrate NDS 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 10-Q filed on September 14, 2011 and May 23, 2012, respectively. 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.
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