Cisco Sells Off Service Provider Video Business To Permira

Global private equity firm Permira is acquiring Cisco’s Service Provider Video Software Solutions (SPVSS) business. Both the firms have recently signed an agreement on this and announced that once the transaction is closed, the Permira Funds will create a new company for this business. The new company will be focused on developing and delivering video solutions for the Pay-TV industry.

The sale of the Cisco SPVSS business has been approved by Cisco’s Board of Directors. For Cisco, this business was never as exciting as its five core units – networking, multi-cloud, security, collaboration and data.

The new company will include Cisco’s Infinite Video Platform, cloud digital video recording, video processing, video security, video middleware, and services groups. Dr. Abe Peled, former Chairman and CEO of NDS and adviser to the Permira Funds, will serve as Chairman of the new company.

“The new company will have the scale, technology innovation, and world-class team to deliver outstanding go-to-market execution, customer engagement, and new end-user experiences. Cisco has built a profitable business in the video space with innovations to capitalize on IP distribution and cloud-based services. These combined assets provide a significant new opportunity for the new company. I am thrilled to be working again in this area with Permira who is committed to innovation and support for our Pay-TV customers, and look forward to the ongoing working relationship with Cisco in support of our mutual customers,” said Dr. Peled.

Cisco will retain the video and media technology related to its core business in networking, multi-cloud, security, data, and collaboration. The transaction is expected to close in Cisco’s Q1 FY19, subject to any regulatory approvals and customary closing conditions.

“We are proud of our innovation in video and the customer momentum that the Service Provider Video group has built,” said Chuck Robbins, Chairman and CEO, Cisco. “With the leadership team and Abe as Chairman, the new company is well-positioned to drive this work forward and continue to deliver the solutions that meet the current and future needs of service provider video customers. Service providers remain a key customer segment for Cisco, and we look forward to continuing to partner with them to deliver new revenue-generating services and experiences.”

Bank of America Merrill Lynch acted as financial adviser to the Permira Funds and provided committed financing; Fried, Frank, Harris, Shriver & Jacobsen LLP and Clifford Chance LLP acted as legal advisor to the Permira Funds.

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