02 May 2018

Globes: Permira buys back NDS from Cisco for $1b

The fall in value of the Jerusalem based TV software solutions company, which was acquired by Cisco in 2012 for $5 billion, is due to changing consumer TV habits.

Private equity fund Permira has entered into a definitive agreement to acquire Cisco’s Service Provider Video Software Solutions (SPVSS) business (formerly known as NDS). Following completion of the deal, Permira Fund will create a new, rebranded company focused on developing and delivering video solutions for the Pay-TV industry.

No financial details were disclosed but sources close to the deal say that Permira will be paying Cisco about $1 billion. The deal ends an unprofitable chapter for Cisco, which acquired NDS from Permira and Rupert Murdoch’s News Corporation in 2012 for $5 billion. Changes in the way people consume television have contributed to NDS’s fall in value as the Jerusalem based company’s customers are traditional cable and satellite TV providers.

Video industry leader Dr. Abe Peled, former chairman and CEO of NDS and adviser to the Permira Funds, will serve as chairman of the new company. The sale of the Cisco SPVSS business has been approved by Cisco’s board of directors.

The new company will encompass a broad portfolio, including Cisco’s Infinite Video Platform, cloud digital video recording, video processing, video security, video middleware, and services groups.

“This is a unique opportunity to lead and shape the video industry during its transition with the flexibility as a private company,” said Dr. Peled. “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.”

Read more here: http://www.globes.co.il/en/article-permira-buys-back-nds-from-cisco-for-1b-1001233827