Cisco Goes Flip Mode

• Cisco Systems Inc, the company which should be buying Sun Micrososytems, has announced it will be buying buying Flip digital camcorder-maker, Pure Digital Technologies
• Cisco, the world’s largest maker of computer networking equipment said today it would pay $590 million in stock to purchase all of privately held Pure Digital’s shares.
• Cisco is attracted to Pure Digital’s pocket-sized Flip camcorder, which has sold more than 2 million units in the US, will help Cisco with their plans to diversify into the consumer market.

“This acquisition will take Cisco’s consumer business to the next level as the company … drives the next generation of entertainment and communication experiences,” Ned Hooper, senior vice president of Cisco’s corporate development and consumer groups, said in the statement.

• Cisco has $29 billion in cash to make the purchase, which is only a small piece of their plans to expand into other markets. What’s great about this potential acquisition is it gets Silicon Valley VC’s one of their first exits of the year. Pure Digital, based in San Francisco, is backed by venture capital investors including Sequoia Capital and Benchmark Capital. Of course.

Tagged as: acquisition, benchmark capital, cisco, flip, purchase, sequoia capital