03/20/09
Cisco Systems Inc. said Thursday it plans to buy Pure Digital, the company behind the popular Flip Video camcorder, for about $590 million in stock.The deal is part of Cisco's aggressive expansion beyond its core business of making computer networking gear. On Monday, the San Jose, Calif.-based company announced that it would start selling servers, to compete for a broader share of the money that big organizations spend on the "data centers" that run their computing operations.Like several other technology companies, Cisco has a large cash hoard - $29.5 billion in its last quarterly update - and is well set to expand during the recession. Chief Executive John Chambers has said a weak economy is an opportunity to invest.For San Francisco-based Pure Digital Technologies Inc., the acquisition is a big payday. The privately held company sold its first camera less than two years ago, quickly drawing accolades for its ease of use. A signature feature of the Flip Video is that a USB connector flips out of the case, letting the user connect the camera directly to a computer. Editing software contained on the camera then starts up on the computer.Pure Digital said it has sold more than 2 million cameras. They cost between $130 and $230.
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