In a deal announced on Friday network equipment giant Cisco Systems Inc. revealed that it will acquire Scientific-Atlanta, one of the largest manufacturers of set-top boxes for the cable television industry. In the acquisition, Cisco will pay Scientific-Atlanta stockholders $43.00 per share for a total of about $6.9 billion dollars, which is roughly a 3.7 percent gain over Friday's closing price for shares of Scientific -Atlanta.
Cisco president and CEO John Chambers said "Video is emerging as the key strategic application in the service provider triple play bundle of consumer entertainment, communication and online services. The addition of Scientific-Atlanta further extends Cisco's commitment to and leadership in the service provider market."
The deal has been approved by the boards of both companies and is expected to be finalized in the third quarter of Cisco's 2006 fiscal year.
News source: New York Post - Associated Press
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