SAN JOSE, CA. — Cisco Systems is acquiring privately held Arroyo Video Solutions for $92 million in cash, the networking giant said Tuesday morning.
The move is the latest into video services by Cisco (Nasdaq: CSCO), which recently acquired Scientific Atlanta for nearly $7 billion last November in order to exploit growing demand for on-demand cable TV.
Arroyo is a developer of on-demand television and other consumer services.
Cisco, which has a major campus in Research Triangle Park, said Arroyo’s technology would be integrated into its next-generation network technology based on Internet Protocol. The network is designed to help telephone and cable providers deliver interactive entertainment, advertising and other services to mobile devices, computers and televisions.
“With the addition of Arroyo’s innovative software, which offers flexibility in content delivery, service providers will be in a position to serve content how, when and where consumers want it,” said Michelangelo Volpi, Cisco’s senior vice president for its routing and service provider technology group.
Drew Major, a founder of Novell, and Paul Sherer, a former chief technology officer at 3Com, are among the managers at Arroyo who will join Cisco. The company has 44 employees. It has offices in California and Utah.
Cisco: www.cisco.com
