In what is becoming a busy week down at Cisco, the networking giant has splashed out $590m in stock for privately held consumer video specialist Pure Digital, with a further $15m to be doled out in retention-based equity incentives for continuing employees.
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The acquisition was rumoured to be on the cards for some time, as Pure's technology slots neatly into Cisco's new consumer strategy, however, the news also leaves egg on the face of CEO John Chambers, who last month tried to throw the speculators off the scent by denying Cisco had any interest in buying in consumer technology.
"The acquisition 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," said Cisco senior vice president of corporate development and consumer groups, Ned Hooper.
Pure will ultimately become part of Cisco's Consumer Business Group, which holds responsibility for all of Cisco's consumer-focused aspirations, including the Linksys By Cisco gear and its recently announced home media kit. Pure CEO Jonathan Kaplan is to remain on board as general manager.
The cornerstone of Pure's line-up is the Flip Video camera, which has gained widespread traction through its ease of integration with video-centric websites such as YouTube.