Cisco buys China set-top business for €30.1m
Cisco has pulled out its wallet again, this time to buy the set-top box business of Chinese firm DVN for US$44.5 million (€30.1 million).
It said yesterday it had also forged a “go-to-market alliance” with the Hong Kong-listed DVN to use its middleware, advanced applications and integration and support services.
The alliance will provide customers with end-to-end capabilities through the evolution from basic digital broadcast to advanced interactive services.
“With this acquisition, we will offer customers the powerful combination of DVN's products with the Cisco IP Next-Generation Network (IP NGN) platform, and Cisco will be well positioned to engage in the largest digital transformation opportunity in the world today,” said Ken Klaer, vice president and general manager, International Cable Business Unit at Cisco.
The Chinese cable market is the world’s largest, with 160 million sub and predicted to grow to as many as 200 million over the next three to five years, Cisco said. The government has mandated a conversion to digital cable by 2015, but to date just one-third of the market has digitized.
The DVN set-top box business will become a part of the Cisco’s international cable business unit within the service provider video technology group (SPVTG).
It will run end-to-end from within China – from design, sourcing and logistics through to marketing, sales and service.
The acquisition is expected to close in the first half of calendar year 2010 subject to standard approvals, Cisco said.