Cisco Exits Pay TV Video Market With Sale to Permira Funds
Cisco has found a buyer for its Service Provider Video Software Solutions business, a move that's been in the air for some time as the company realigns and focuses on five areas: networking, multi-cloud, security, data, and collaboration. The buyer is a company backed by Permira Funds, and the chairman of the new company is Dr. Abe Peled, formerly the CEO of NDS. After a rebranding, the new company will provide video solutions for pay TV companies.
"This is a unique opportunity to lead and shape the video industry during its transition with the flexibility as a private company," Peled said. "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."
The sale includes Cisco's Infinite Video Platform, cloud DVR, video processing, video security, video middleware, and services. Not included is the video and media technology Cisco owns that relates to networking, multi-cloud, security, data, and collaboration.
"I’m very pleased to say that one of the major reasons for the selection of Permira is the belief that they are the right investor to benefit our customers and employees," wrote Yvette Kanouff, senior vice president and general manager of Cisco's service provider business. "At the same time, Cisco will be able to clearly focus on its core priorities."
The terms of the sale were not disclosed, but one report puts the price tag at $1 billion (Cisco acquired NDS from Permira and News Corporation for $5 billion back in 2012). The sale should close in Cisco's Q1 FY19.
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