Private equity fund Permira has entered into a definitive agreement to acquire Cisco’s Service Provider Video Software Solutions (SPVSS) business (formerly known as NDS). Following completion of the deal, Permira Fund will create a new, rebranded company focused on developing and delivering video solutions for the Pay-TV industry.
No financial details were disclosed but sources close to the deal told Israeli media that the Jerusalem based Permira will be paying Cisco about $1 billion.
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Cisco acquired NDS from Permira and Rupert Murdoch’s News Corporation in 2012 for $5 billion. But, NDS’ customers which are traditional cable and satellite TV, have changed the way they consume television and contributed to its fall in value.
Video industry leader Dr. Abe Peled, former chairman and CEO of NDS and adviser to the Permira Funds, will serve as chairman of the new company. The sale of the Cisco SPVSS business has been approved by Cisco’s board of directors.
The new company will encompass a broad portfolio, including Cisco’s Infinite Video Platform, cloud digital video recording, video processing, video security, video middleware, and services groups.
“This is a unique opportunity to lead and shape the video industry during its transition with the flexibility as a private company,” said Dr. Peled. “The new company will have the scale, technology innovation, and world-class team to deliver outstanding go-to-market execution, customer engagement, and new end-user experiences. Cisco has built a profitable business in the video space with innovations to capitalize on IP distribution and cloud-based services. These combined assets provide a significant new opportunity for the new company. I am thrilled to be working again in this area with Permira who is committed to innovation and support for our Pay-TV customers, and look forward to the ongoing working relationship with Cisco in support of our mutual customers.”
“We are proud of our innovation in video and the customer momentum that the Service Provider Video group has built,” said Chuck Robbins, Chairman and CEO, Cisco. “With the leadership team and Abe as Chairman, the new company is well-positioned to drive this work forward and continue to deliver the solutions that meet the current and future needs of service provider video customers. Service providers remain a key customer segment for Cisco, and we look forward to continuing to partner with them to deliver new revenue-generating services and experiences.”
Cisco will retain the video and media technology related to its core business in networking, multi-cloud, security, data, and collaboration.
Permira fund has, in the past, held a controlling stake in Israeli Netafim, the drip irrigation systems provider.
