Investing

Cisco Buys DiviTech of Denmark (CSCO)

Cisco Systems (NASDAQ: CSCO) is acquiring Denmark-based DiviTech A/S, which is noted as a leader in the digital-service management (DSM) market with a solution that offers media broadcasters, cable and Internet Protocol Television (IPTV) service providers an intuitive interface for creating, modifying and managing video networks. This acquisition is to further enhance Cisco’s video-delivery strategy. 

Its technology includes a software application that allows service provider customers to centrally provision and easily deliver localized content, such as local and regional news and on-demand video and services, within a specific geography. 

Cisco will integrate DiviTech’s DSM product with the industry-leading Cisco ROSA network- and element-management solution to create an end-to-end platform that offers all layers of digital video management in a single modular product.

The acquisition is expected to close in Cisco’s Q4-2008 and financial terms of the deal were not undisclosed.  As far as the scope of this, this would be likely considered another acquisition for a piece in the toolbox rather a game changer or entirely new business segment.

Jon C. Ogg
June 10, 2008

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