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Cisco To Buy Pure Digital

3/30/2009 02:00:00 AM Eastern

Cisco reported it will purchase the privately held Pure Digital, makers of the Flip Video cameras.

Cisco will pay about $590 million in stock for Pure Digital and put an additional $15 million toward retaining Pure's employees. The deal is expected to close during the fourth quarter of this year.

Cicso called the deal integral to the company's ongoing transition into the consumer market. Cisco has come out with several products designed to spread multimedia content throughout the home, primarily through its Linksys home-networking brand.

Pure Digital has sold about 2 million Flip Video cameras, Cisco said.

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