flipCisco Thursday announced its intent to acquire privately held Pure Digital Technologies, creator of the Flip video camcorder for consumers, for $590 million in stock.

Pure Digital is a “pioneer” in developing consumer-friendly video with mass-market appeal, Cisco says. The acquisition of Pure Digital is key to Cisco’s strategy to expand momentum in the media-enabled home and to capture the consumer market transition to visual networking, the company said in a statement.

In addition to exchanging $590 million in stock for all Pure Digital shares, Cisco will provide up to $15 million in retention-based equity incentives for continuing employees. The acquisition is expected to close in the fourth quarter of Cisco’s fiscal year 2009.

Read the full article on NetworkWorld.com

Cisco buying Flip video camera maker for $590 million
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