Cisco is at it again. The company is acquiring the set-top box business of one of China’s largest cable companies, DVN, for $44.5 million. This is peanuts compared to Cisco’s latest acquisitions including the recent acquisition of ScanSafe for $183 million. A few weeks ago, Cisco announced a $2.9 billion acquisition of mobile networking infrastructure provider Starent Networks, which followed the $3 billion acquisition of video video-conferencing company Tandberg in late September.
Under the terms of the agreement, approximately $17.5 million will be paid up front, with an additional maximum amount of $27 million to be paid over four years based on sales performance. The acquisition is expected to close in the first half of 2010.
Cisco is looking to boost it’s cable business offerings with this acquisition. Cisco says the Chinese cable market is currently the largest in the world with 160 million subscribers and is predicted to grow to as many as 200 million over the next three to five years. DVN’s box unit will become part of Cisco’s International Cable Business Unit within the Service Provider Video Technology Group.