During this economic crisis Cisco is brave enough to acquire Pure Digital, the makers of the popular Flip line of portable video cameras for $590 million in stock. Cisco will also pay out $15 million in retention incentives for Pure employees who stay on with the new company.
More than 2 million Flip video cameras have been sold in the U.S. to date, and the move will expand Cisco’s consumer market presence with what is essentially, a high-end toy.
“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,” said Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups. “Pure Digital has revolutionized 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.”