Cisco this morning announced its intent to purchase privately-held and venture-backed ExtendMedia, a provider of software-based Content Management Systems that helps media companies and network operators manage digital video content.
Financial terms of the transaction remain undisclosed, and the deal is expected to close in the first half of Cisco’s fiscal year 2011.
Based in Newton, Mass., with the majority of its employee base in Toronto, Canada, Cisco says ExtendMedia’s technology and core team will help the company deliver solid multi-screen offerings as the market transitions to IP video.
The company raised over $33 million in venture capital from investment firms Venrock, Atlas Venture and TVM Capital.
ExtendMedia’s CMS software, which will integrate with Cisco’s current IP video offerings, will be a core component of Cisco’s video architecture. Together, Cisco and ExtendMedia will enable service providers to deploy an end-to-end video architecture platforms that delivers the best consumer experience with access to any content, over any network, on any device.
Upon the close of the acquisition, the majority of the ExtendMedia team will be integrated into Cisco’s Service Provider Video Technology Group. The ExtendMedia Sales and Professional Services teams will integrate into the Cisco Sales and Advanced Services organizations.
Last May, Cisco acquired CoreOptics, a designer of digital signal processing solutions for high-speed optical networking applications, for $99 million in cash, and Moto Development Group for an undisclosed sum.
Thus, the ExtendMedia deal would be Cisco’s third acquisition this year, not counting its May purchase of the set-top box business of DVN Holdings Limited.
Source: press release