Friday, April 17, 2009

Cisco currency is back

Cisco announced last month that it will purchase Pure Digital Technologies, Inc. for approximately $590 million in stock. Pure Digital markets one-time-use digital cameras and video camcorders, as well as point and shoot camcorders. The group of investors/sellers includes Benchmark Capital, Crescendo Venture Management LLP, Focus Ventures, Sequoia Capital, Steamboat Ventures, LLC, and VantagePoint Venture Partners. The deal is expected to close in the fourth quarter of Cisco's 2009 FY.

Flip (Pure Digital's leading product) is designed for the YouTube uploads. Flip records videos and immediately uploads them to the Web via a USB stick. Cisco wants to stoke bandwidth use. The all-stock deal is a return to the good-old days of the 1990's when use of Cisco's stock fueled its M&A activity. Now sophisticated investors are no longer hesitant to receive Cisco stock as a currency.

No comments: