Cisco snaps up gadget company

WHILE MOST businesses are shoring up their leaky finances, seemingly deep-pocketed Cisco is forking out $590 million in stock for Pure Digital Technologies, makers of the Flip MinoHD and Flip Video gadgetry.

The technology, made famous by a clever TV marketing gimmick, has been gaining adepts thanks to a simplistic interface design and is apparently in-line with Cisco's consumer strategy (not that they've had one so far).

Cisco says this is a perfect example of their "build, buy and partner" strategy, although clearly, the firm is not using that particular order.

Cisco will acquire Pure Digital, Flip Video's mother company, in a stock-for-stock deal worth $590 million, plus some $15 million change "in equity for continuing employees".

Senior Veep and Prez of Corporate Development & Consumer Groups at Cisco Ned Hooper said, "The acquisition of Pure Digital is key to Cisco's strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking."

Heaven knows what Cisco wants with a company whose entire portfolio consists of a technology easily duplicated by 2nd-tier ODMs in Taiwan, but - hey - there must be a plan.

So... (deep breath) hands in the air if you think world and its dawg won't come up with a clone as soon as they hear two million of the Flip devices have been sold State-side only to be quickly replaced by HD video-capable mobile phones shortly thereafter?

We rest our case. µ