Cisco to buy Hong Kong-listed DVN's set-top box business

Nov. 4, 2009 (China Knowledge) - Nasdaq-listed Cisco Systems Inc, the world's largest supplier of networking equipment, announced Monday that it has finalized an agreement to purchase the set-top box business of Hong Kong-listed DVN (Holdings) Ltd<0500> for up to US$44.5 million.

Pursuant to the agreement, U.S.-based Cisco will pay around US$17.5 million upfront plus up to US$27 million over four years based on sales. However, the networking giant did not specify any sales targets.

The deal, which is still subject to DVN shareholder and regulatory approval, is expected to be completed in the first half of 2010.

Cisco said that the set-top box business will become part of its international cable business unit.

Cisco also entered an alliance with DVN to utilize its software, applications and support services.

DVN, one of the largest digital TV broadcasting system integrators in China, is mainly engaged in the design, development, integration and sales of digital set-top boxes, smart cards, conditional access systems, digital broadcasting systems and related software in China.