Cisco to acquire Scientific-Atlanta Inc.
Data and communications equipment maker Cisco Systems Inc. has announced its plan to acquire Scientific-Atlanta Inc. Scientific-Atlanta specializes in cable television set-top boxes and is currently the top seller of these equipment in the US market. The deal is worth around USD 7 Billion. The new was reported by the New York Times who has quoted some people who were briefed on the negotiations.
The newspaper also claimed that the deal was approved by the boards of both companies after the stock market closed on Thursday. The final deal is expected to cost around USD 5.3 Billion considering Cisco expects to acquire a cash balance of about $1.7 billion from Scientific-Atlanta. The newly acquired company is expected to keep its current management.
Both the companies have refused to comment to the media about the deal. Cisco already holds a strong position in the US cable television market and this latest deal would give it access to the cable set-top business. This will also get them more expertise in video systems and software. Cisco is constantly on hunt for new technologies and businesses to generate more revenues.