|Cisco confirmed its intent to buy NDS for around $5 billion.|
SAN JOSE, Calif. ( TheStreet) -- Cisco ( CSCO) has confirmed its intent to acquire NDS, a developer of software for multi-channel television networks, in a deal worth around $5 billion. The networking giant will use NDS to boost is Videoscape offering, which lets service providers deliver content over multiple devices.
"Our strategy has always been driven by customer need and on capturing market transitions," explained Cisco CEO John Chambers, in a statement. "Our acquisition of NDS fits squarely into this strategy, enabling content and service providers to deliver new video solutions that leverage the cloud and drive new monetization opportunities and service differentiation." Cisco is also confident that NDS will extend the company's reach in emerging markets such as India and China, where the software developer already has an established presence. In its statement, Cisco also noted that a significant portion of NDS's software, services and content protection business is recurring. The London-based firm also enjoys long-term contracts, with an average duration of around five years, according to Cisco. The acquisition, which is expected to close during the second half of calendar year 2012, has been approved by the boards of both companies. Cisco shares dipped 24 cents, or 1.21%, to $19.95 in premarket trading on Thursday. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.