Cisco has announced that it intends to buy the UK-based firm NDS Group.
NDS is a provider of video software and content security solutions, involved in digital rights management and secure delivery of video.
In a statement, Cisco said the acquisition would accelerate the delivery of its Videoscape platform, which is designed to enable media companies to deliver "next-generation entertainment experiences".
Furthermore, it will broaden Cisco's scope when it comes to reaching emerging markets such as China and India, where NDS already has an established customer base.
The acquisition is also going to cost a pretty penny or three - well, actually just over £3 billion.
Marthin De Beer, Senior Vice President of Cisco's Video and Collaboration Group, wrote in a blog post: "Television has been truly transformed in the past decade, from a one-way inflexible viewing experience, to a highly dynamic one, which can be time-shifted and enjoyed on an increasing array of digital video devices. But this is only the beginning of an exciting journey."
"While clearly a substantial acquisition and major landmark in Cisco's history in its own right, today's acquisition is the latest in a series of milestones for Cisco's Videoscape strategy. Videoscape is Cisco's vision and platform for the creation of new visual, mobile and social video entertainment experiences through the convergence of digital TV, online content, and social media and video communications applications."
The deal should be closed in the second half of 2012.