Networking giant Cisco announced this morning that the acquisition of NDS Group Ltd has been completed.
After winning EU approval for the $5 billion acquisition of the Israeli video software company last week, the company has now signed on the dotted line, and agreement of $5 billion, plus the repayment of outstanding debt and retention incentives is now complete. NDS used to be 51 percent owned by private equity fund Permira, with 49 percent secured by News Corp.
Jesper Anderson, senior vice president and general manager, Service Provider Video Technology Group said:
"The addition of NDS' leading software solutions and systems integration expertise play a key role in accelerating the Cisco Videoscape platform aimed at delivering better-than-being-there entertainment experiences. Through our combined expertise, we look forward to providing the next-generation TV experience that is more immersive, engaging and social, while helping to create new revenue opportunities for our service provider customers."
The deal, which would bring cutting-edge technology into the networking giant's grasp, had to first be approved by U.S. authorities. Both boards of Cisco and NDS approved the transaction, but were waiting on regulatory permission.
Cisco has previously stated that it intended to acquire the company in order to speed up development and delivery of its Videoscape platform. The new technology is aimed at on-demand video for mobile devices and tablets -- propelling the company forward into a post-PC business environment. It is also likely to play a part in Cisco's plans to expand its global video footprint in new and emerging markets.
Founded in 1998, London-based NDS is a software maker for paid-television channels used by broadcasters worldwide. It specializes in the secure delivery of interactive P systems, home entertainment, set-top boxes and web applications.
The financial impact to Cisco is expected to be accretive to EPS in the first full year on a non-GAAP basis.