Cisco has agreed to acquire NDS for USD 5 billion including debt. NDS's video software and content security products for pay-TV providers are expected to help Cisco expand in the growing online video market, one of its five key growth areas. NDS' products, including middleware, conditional access and DRM, will compliment Cisco's Videoscape platform for TV delivery. NDS also brings a strong position in emerging markets such as China and India, significant recurring revenues ans systems integration expertise. The acquisition is expected to close during the second half of 2012, subject to regulatory approval, and Cisco expects NDS to add to adjusted EPS in the first year of ownership. Around 5,000 employees will join Cisco as a result of the deal, as well as NDS sites in the UK, Israel, France, India and China. NDS executive chairman Abe Peled will become senior VP and chief strategist at Cisco's Video & Collaboration Group. Based in the UK, NDS was taken private in 2009 in an acquisition by News Corp (49%) and Permira (51%). In December last year it made a preliminary filing for an IPO.
