Cisco buys NDS in $5bn deal Cisco, the world's largest maker of computer networking equipment, aims to expand its video services business by agreeing a $5bn acquisition of NDS, the video and content security software company. California-based Cisco said the purchase price included debt and retention-based incentives. The boards of both companies have agreed the transaction. NDS makes security software used by pay-TV operators such as British Sky Broadcasting, Canal Plus and DirecTV to help prevent their channels from being hacked into by people who haven't paid for their services. The company is co-owned by News Corp and Permira, the London-based private equity group. John Chambers, Cisco chief executive, said the acquisition fitted with the company's strategy of providing tools for delivering new kinds of video services over the internet. The company also acquired Tandberg, the video conferencing company for $3.4bn in 2009, and bought Scientific Atlanta, the television set-top box company, for $6.9bn in 2005. Our strategy has always been driven by customer need and on capturing market transitions. Our acquisition of NDS fits squarely into this strategy, enabling content and service providers to deliver new video solutions that leverage the cloud and drive new monetisation opportunities and service differentiation," Mr Chambers said. News Corp and Permira took the company private in 2008 in a $1.5bn deal, with News Corp holding 49 per cent and Permira owning 51 per cent. The two companies had looked to float the business last summer. The deal is expected to close in the second half of 2012.