The acquisition of DiviTech will further enhance Cisco's video-delivery strategy. DiviTech's DSM technology includes a software application that will allow service provider customers to centrally provision and easily deliver localized content, such as local and regional news and on-demand video and services, within a specific geography. Cisco plans to integrate DiviTech's DSM product with the Cisco ROSA network- and element-management solution to create an end-to-end platform that offers all layers of digital video management (element, network and service) in a single modular product.

"DiviTech provides Cisco with a core team of some of the most talented engineers in the DSM market," said Dean Rockwell, vice president and general manager of the Digital Media business unit in Cisco's Service Provider Video Technology Group. "DiviTech's DSM platform will serve as the foundation for Cisco's continued leadership in next-generation management tools and applications for complex video networks."

DiviTech's DSM solution complements Cisco's internally developed video innovations as well as expertise attained from other recent acquisitions in the video market, including Scientific Atlanta, Arroyo and Tivella. DiviTech marks Cisco's 128th acquisition.

The acquisition of DiviTech is subject to various standard closing conditions and is expected to close in Cisco's fourth quarter of fiscal year 2008. Financial terms of the transaction are undisclosed. Upon the close of the acquisition, Cisco plans to integrate DiviTech into Cisco's Digital Media business unit as part of the Service Provider Video Technology Group. DiviTech employees will move into Cisco's Copenhagen facility.