Cisco agrees on buying NDS for $5 Billion

Cisco Systems Inc. (CSCO), the largest maker of equipment for computer networks, agreed to buy NDS Group Ltd. (NNDS) in a deal valued at about $5 billion to add software used in next-generation video services.

San Jose, California-based Cisco said today that the purchase price includes debt and retention-based incentives, and the boards of both companies have approved the transaction, which is subject to regulatory review and will be completed in the second half of 2012.

Cisco Chief Executive Officer John Chambers is working to add more profitable products as part of a turnaround plan. The company had about $46.7 billion in cash and cash equivalents in the U.S. and overseas as of January and has pledged to be aggressive in technology acquisitions.

NDS, which makes software for pay-TV channels used by British Sky Broadcasting Corp. and DirecTV (DTV), is co-owned by Rupert Murdoch’s News Corp. and London private-equity firm Permira Advisers LLP, as Bloomberg stated.

“Our strategy has always been driven by customer need and on capturing market transitions,” Chambers said in the 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.” He added

To be mentioned that NDS is Cisco’s biggest deal since it bought Scientific- Atlanta Inc. in 2006.