CISCO Inc. said thursday it has agreed to acquire the maker of a popular video camera, continuing the business-technology giant's push into consumer products.
Cisco will pay around $590 million plus up to $15 million in retention bonuses for Pure Digital Technologies Inc., a San Francisco-based company that makes the Flip handheld video camera. Closely held Pure Digital has raised at least $68 million from a number of venture capital firms since its inception, with backers including Sequoia Capital and Benchmark Capital.
The Flip camera has gained popularity because of its small size, ease of use, and low price tag – a standard camera costs less than $200. Cisco said Thursday that Pure Digital has sold more than two million of the devices since introducing the product in May 2007.
For Cisco, the acquisition continues the company's expansion away from its core business of selling computer-networking gear to businesses. The San Jose, Calif., company moved into home networks by acquiring LinkSys Group Inc. for $500 million in 2003, and in 2005 paid $5.3 billion for cable-box maker Scientific-Atlanta Inc. In January, Cisco unveiled a wireless home audio system that it developed.
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