$590m for Flip Video pioneer
Cisco Systems has announced its intent to acquire Pure Digital Technologies, the San Francisco-based creator of the Flip Video brand of low-cost consumer camcorders.
Flip Video is a range of camcorders aimed at the social networking generation. The products – Flip Mino and Flip Ultra as well as the Flip Video original – feature inbuilt software called FlipShare that enable users to instantly upload content to MySpace or YouTube.
Ned Hooper, SVP of Cisco’s corporate development and consumer groups, said: “The acquisition of Pure Digital is key to Cisco’s strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking.
“Pure Digital has revolutionised the way people capture and share video with Flip Video. 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.”
Cisco will pay approximately $590m (£405m) in stock in exchange for all shares of Pure Digital. In addition, Cisco will provide up to $15m in retention-based equity incentives for continuing employees, the company said.
The Pure Digital team will become part of Cisco’s Consumer Business Group. Jonathan Kaplan, chairman and CEO of Pure Digital, will become general manager of the combined organisation.
Kaplan said: “Flip Video puts the power to instantly capture, edit and share video into the hands of everyday consumers. By combining forces with Cisco, we join a company that shares our passion for video and whose global scale and tremendous technology expertise we expect will enable us to quickly expand and enrich the Flip Video experience.