Cisco to buy News Corp TV firm for $5bn

CISCO will buy NDS, the video software developer half-owned by News Corp, for $5bn (£3.2bn) as the Californian company works to enhance its TV services arm.

Cisco, the computer networking equipment maker, said the acquisition will “complement and accelerate the delivery of Videoscape, [its cloud-based] platform that enables service providers and media companies to deliver next-generation entertainment experiences” to a range of devices from TV to smartphone.

The move will also expand Cisco’s reach into emerging markets such as China and India, where NDS is already firmly established.

The $5bn deal, expected to complete in the second half of the year, is more than a 35 per cent mark up on NDS’ value when it delisted from Nasdaq in 2009.

It is 51 per cent owned by private equity fund Permira with News Corp holding the remaining 49 per cent.

Founded in Israel in 1988, NDS holds its headquarters in Staines and has 5000 employees across the UK, Israel, France, India and China.

NDS enables content to be delivered to set-top boxes and mobile devices, and counts BSkyB – 39.1 per cent owned by News Corp – among its clients.

Cisco closed down one per cent at $19.91.