Cisco to acquire Flip video camera maker

Jake Widman
Friday, 20 March 2009 05:22

IT Industry - Market

Networking giant Cisco has announced its intention to acquire Pure Digital Technologies, manufacturer of the Flip series of  handheld video cameras.

More than 2 million Flip Video cameras have been sold, according to the announcement. They were one of the first of the new wave of video cameras that fit in a shirt pocket and come with built-in USB connections for easily transferring video to PCs as well as software for sharing it to sites such as YouTube. Others in the field include the Creative Vado and the Kodak Zi6 .

"Pure Digital has revolutionized the way people capture and share video," according to Ned Hooper, senior vice president of Cisco's Corporate Development and Consumer Groups. "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."

Pure Digital will be folded into Cisco's Consumer Business Group, which also includes its Linksys home networking, Media Hub home entertainment storage, and wireless home audio products. Cisco plans to exchange upwards of $590 million in stock for all shares of Pure Digital, plus provide up to $15 million in retention-based equity incentives for continuing employees.