Cisco closes Scientific-Atlanta acquisition
- 28 February, 2006 07:59
Cisco Systems has completed its acquisition of Scientific-Atlanta, a US$7 billion deal that significantly bolsters Cisco's effort to offer carriers a complete data, voice, video and mobility infrastructure lineup.
Scientific-Atlanta is one of the biggest providers of TV set-top boxes, video distribution networks and video systems integration. The acquisition, announced last Nov. 18, fits into Cisco's plans to help consumers stream and download multimedia content and then share it around their homes.
The company and its chief executive officer, Jim McDonald, have joined Cisco's Routing and Service Provider Technology Group led by Cisco Senior Vice President Mike Volpi, according to the network infrastructure maker.
Cisco paid US$43 per share in cash. Not including Scientific-Atlanta's existing cash balance, the deal was worth about US$5.1 billion.
The deal is exceptional for Cisco in that the company usually acquires smaller companies and tries to buy near to its home base. Scientific-Atlanta is the biggest company Cisco has ever acquired in terms of employees and revenue, said Cisco spokesman Ron Piovesan. In its 2005 fiscal year, the company brought in $1.91 billion, Piovesan said. Its work force of about 7,600 will remain intact, he added.