Expanding its reach into consumer electronics arena, networking behemoth Cisco has announced its intentions to snap up Pure Digital Technologies, the company which ships line of budget video camcorders, such as Flip Video and Flip MinoHD, for as much as $590 million.
Pure Digital has the reputation of launching affordable yet impressive range of video camcorders, with its Flip camcorder series has truly made video recording accessible to a large number of users.
The company has sold over two million units of its video camcorders since its inception, making it a potential target for the networking company Cisco, which is trying hard to extend its arms in consumer electronics domains.
Acknowledging the mark Pure Digital’s Flip camcorder has made, Ned Hooper, senior VP for Corporate Development at Cisco, said in a statement, “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”.
The deal will include, in addition to the $590 million stock-for-stock purchase, $15 million extra “in equity for continuing employees”, and is expected to be closed by the end of this year.
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The important news was that Cisco made the purchase in stock and not in cash. Cisco has nearly 30 BILLION dollars in the bank. Could that mean that the company is going to buy "something" big soon? Say a company like Sun Microsystems. Cisco purchased Pure Digital Technologies, not Pure Digital, the DAB manufacturers. Why they would want a company that makes a tiny consumer oriented company that makes cameras remains a mystery.