Cisco has agreed to sell its Service Provider Video Software Solutions (SPVSS) business to Permira, which will rebrand the company and have it focus on developing video services and systems for the pay-TV industry. Abe Peled will be the chairman of the new company. He was previously the CEO of NDS, the predecessor to SPVSS, which Cisco acquired in 2012 from Permira.
Cisco acquired NDS for USD 5 billion. In the six years since, it has struggled to gain a foothold in the service provider market. Reports late last year said the company was looking to sell the business. Cisco earlier closed its CVTF video software subsidiary in France, as part of a restructuring plan announced in August 2016.
Cisco said it wants to focus on its core businesses, five key areas targeting the enterprise sector that include networking, multi-cloud, security, data, and collaboration.
Permira will be acquiring a portfolio that includes the Infinite Video Platform, cloud DVR, video processing, video security and video middleware assets as well as services. Cisco will keep the video and media technology related to its core business in networking, multi-cloud, security, data, and collaboration.
No financial details were provided. The transaction is expected to close in Cisco's fiscal first quarter for 2019, subject to the usual regulatory approvals and closing conditions.
