Cisco is selling NDS back to private equity fund Permira for approximately $1 billion in a deal that will hopefully begin an upswing for the formerly profitable media firm.
Jerusalem-based NDS (News Datacom) was purchased for $5 billion by Cisco in 2012 from Permira and Rupert Murdoch’s News Corporation.
At that time, the firm was one of the top tech companies in Israel, but changes in the way Israelis consume television contributed to its decline during its transformation as Cisco’s Service Provider Video Software Solutions (SPVSS). According to Globes, NDS caters to traditional cable and satellite TV providers.
Dr. Abe Peled, an adviser to Permira Funds and the former chairman and CEO of NDS, will serve as the company’s new chairman.
“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,” Peled said in a statement.
“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.”
Cisco’s chairman and CEO, Chuck Robbins, added, “With the leadership team and Abe as chairman, the new company is well-positioned to drive this work forward and continue to deliver the solutions that meet the current and future needs of service provider video customers.”