Cisco to Acquire DVN
Under the terms of the agreement, Cisco will pay up to $44.5m for the set-top box business of DVN. Of this amount, approximately $17.5m will be paid up front, with an additional maximum amount of $27m to be paid over four years based on the achievement of specific sales milestones. The acquisition is expected to close in the first half of calendar year 2010 subject to standard closing conditions, DVN shareholder approval and regulatory approvals.
Ken Klaer, vice president and general manager of international cable business unit at Cisco, said: “With this acquisition, we will offer customers the powerful combination of DVN's products with the Cisco IP Next-Generation Network platform, and Cisco will be well positioned to engage in the largest digital transformation opportunity in the world today.”
Terry Lui, CEO of DVN, said: “Cisco's global technology leadership and breadth of services combined with DVN's market-leading solutions and talented employee base will ensure that Chinese consumers continue to receive superior digital services today and are provided with world-class advanced technologies moving forward.”
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