Cisco Systems has announced an agreement to acquire Canadian company, PixStream Incorporated, for U.S. $369 million.
PixStream is a provider of hardware and software solutions to distribute and manage digital video across many types of broadband networks.
The acquisition is in line with Cisco’s policy to accelerate broadband deployments and build networks that allow service providers to offer data, voice and video services to businesses and consumers.
Under the terms of the agreement, Cisco common stock worth an aggregate value of approximately U.S. $369 will be exchanged for all outstanding shares and options of PixStream.
In addition, Cisco expects a one-time charge for purchased in-process research and development expenses not to exceed US $0.02 per share.
Video is expected to account for a growing percentage of traffic on the Internet, and the acquisition of PixStream is envisaged to enable Cisco to accelerate the delivery of broadcast-quality video over broadband networks.
PixStream’s technology is expected to extend Cisco’s broadband market leadership into video services allowing cable, DSL and wireless providers to deliver a single end-to-end solution for the delivery and management of broadband video services.
The deal is the 17th announced this year by Cisco as it pursues its goal of 20 to 25 acquisitions by the end of 2000.