Cisco Dumps Video Software Biz, Ends NDS EraCisco Dumps Video Software Biz, Ends NDS Era

Cisco is shrinking its service provider operations with the sale of its Service Provider Video Software Solutions (SPVSS) business, which is, in effect, the NDS business it acquired in 2012 for $5 billion. (See Permira to Buy Cisco's Service Provider Video Software Solutions Business.)

In a quirky twist of fate, the buyer is private equity firm Permira, which sold NDS to Cisco six years ago. (Permira was a 51% stakeholder in NDS.) (See Cisco Bets $5B More on Video With NDS.)

Cisco Systems Inc. (Nasdaq: CSCO) appears to be selling the business for much less than it paid. Reports from Israel, where NDS was based, suggest a price of US$1 billion, though Permira has told Light Reading that this information is "wrong." The accurate figure is not being disclosed, the private equity firm said.

Permira plans to launch a "new, rebranded company focused on developing and delivering video solutions for the Pay-TV industry" with Dr. Abe Peled, former chairman and CEO of NDS and an adviser to Permira, as its chairman. Peled joined Cisco following the NDS acquisition in 2012 as senior vice president and chief strategist for Cisco's Video and Collaboration Group, but left at the end of 2013.

The new business will be built around Cisco's Infinite Video Platform, cloud digital video recording, video processing, video security, video middleware and associated professional services. (See Cisco's Cloud Video Platform Grows Up and Cisco's Infinite Video Platform.)

Permira deflected questions about the financial performance of the business it is acquiring or how many staff would transfer from Cisco.

The deal is expected to close in the first quarter of Cisco's fiscal year (roughly August-October).