Cisco buys HK set-top maker DVN | Shanghai Daily

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Cisco buys HK set-top maker DVN

CISCO Systems Inc announced today it will pay US$44.5 million to acquire Hong Kong-listed set-top box vendor DVN (Holdings) Limited with major operations in the Chinese mainland.

It's Cisco's first acquisition aimed at the Chinese market, which shows the US-based router maker's expansion in the fast-growing consumer market, analysts said.

Under the terms of the agreement, Cisco will pay approximately US$17.5 million upfront, with an additional maximum US$27 million to be paid over four years, based on sales figures, said Cisco without specifying sales targets.

"Both sides will offer customers the powerful combination of DVN's products with the Cisco's IP Next-Generation Network (IP NGN) platform," said Ken Klaer, vice president and general manager, International Cable Business Unit at Cisco.

"Cisco will be well positioned to engage in the largest digital transformation opportunity in the world today," said Klaer.

Cisco said it also plans to enter into an alliance with DVN to utilize its software, applications and support services.

The Chinese cable market is currently the largest in the world with 160 million subscribers and is predicted to grow to as many as 200 million over the next three to five years. Currently, only about one-third of the market has converted to digital cable and the Chinese government has announced full digitization by 2015, which represents huge opportunity for Cisco, analysts said.
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